Today’s News
Tesla’s share price surge on Tuesday contributed to the Nasdaq Composite and S&P 500 reaching new record highs in a relatively calm pre-holiday trading session.
Image Source: Associated Press
The Nasdaq Composite rose by 0.8%, marking its 22nd record close for 2024, and the S&P 500 increased by 0.6%, achieving its 32nd record of the year. The Dow Jones Industrial Average also saw gains, rising 0.4% or 162 points.
Despite fluctuating between minor gains and losses throughout the day, major stock indexes rallied before the market closed. This movement occurred even as Federal Reserve Chair Jerome Powell, speaking at a conference in Portugal, indicated that the U.S. has made significant progress on controlling inflation. However, he maintained a cautious stance on rate cuts, emphasizing the need for more certainty that inflation is consistently decreasing before considering policy loosening.
Investors navigated a quiet period with limited economic and corporate data available as they awaited the upcoming earnings season.
Market sentiment was also influenced by political developments, particularly following President Biden’s debate performance, which led investors to speculate on the economic implications of potential policy changes under a second Trump administration.
This speculation has driven recent sell-offs in U.S. government bonds, with investors concerned that Trump’s proposed tax cuts could increase deficits and inflation. Such fiscal changes, in the event of a Republican control of both the White House and Congress, could lead to increased borrowing costs due to the influx of new government debt.
Matt Stucky of Northwestern Mutual Wealth Management noted that the chances of a divided government appear reduced post-debate, impacting market prices.
Meanwhile, Tesla’s announcement that its vehicle deliveries decreased less than analysts had anticipated led to a 10% jump in its stock price, marking six consecutive days of gains. This movement was part of broader gains among the top tech stocks, with all members of the “Magnificent Seven” except Nvidia seeing increases.
On the commodities front, Brent crude oil prices stabilized near the highest levels since April, closing at USD 86.24 a barrel. Market dynamics were affected by geopolitical tensions and natural events that could impact global supply chains.
Looking ahead, U.S. markets were set for a shortened session on Wednesday and closure on Thursday for the Fourth of July, with investors keenly anticipating the release of the June jobs report on Friday, expected to indicate the addition of about 200,000 jobs.
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