LAST UPDATE: 19:22
“Brake” in the effort of investors to drive, and today, higher Wall Street indices, with “fuel” the quarterly corporate results and Tesla’s rally, put the concerns about the course of the American economy.
Wall Street’s indexes opened trading mostly higher, with investors focusing for another day on US corporate profitability after an apparent de-escalation of Middle East tensions roiled international markets last week.
Tesla’s stock rally, which sparked positions in other technology stocks, and additional support provided by positive corporate results reported by companies across industries, whetted investor appetite for new positions. But that appetite didn’t last long, with sellers returning to the US market board just an hour into trading, with the Nasdaq the last to succumb to the pressure and trailing the Dow Jones and S&P 500 in the red.
More specifically, the Dow Jones Industrial Average is down 0.34% at 38,371.45 points, while the broader S&P 500 +0.30% is now at -30% at 5,055.10 points. Slightly smaller losses, 0.24%, are noted by the tech-heavy Nasdaq, which moves to 15,659.65 points, as Tesla’s rally “brakes” the slide of the index lower.
The electric vehicle company, a standout among large-cap stocks today, jumped 10% after the company said it would accelerate the rollout of less expensive models in an effort to reverse declining demand for the models. of, after posting another disappointing quarter in terms of results.
The company will begin production of new models as soon as this year, well ahead of its schedule of starting production in late 2025. The news overshadowed disappointing quarterly earnings and sales, with the company’s CEO Elon Musk is betting lower-priced models will boost demand for electric vehicles, which has slowed globally and forced other automakers to rethink their electrification plans.
Significant gains of around 6% were also recorded by Texas Instruments after the announcement of better-than-expected quarterly results, while a 1% increase was recorded by Visa’s stock, which completed another strong quarter.
Despite positive signals from the earnings front, however, investors appear to remain concerned about the path of the US economy, worries that were heightened by earlier data on new orders for core capital spending, which showed they rose modestly in May , suggesting that business spending on equipment was sluggish in the first quarter of the year.
Investors meanwhile await Friday’s new data on personal consumption spending, the Federal Reserve’s preferred gauge of inflation, hoping it will give a clearer picture of when the Federal Reserve is expected to start USA the reduction of its interest rates, which the market is eagerly expecting as it is estimated that it will give a boost to the American economy.
