Tesla Surge Propels Nasdaq and S&P 500 to New Heights

A surge in Tesla shares on Tuesday propelled the Nasdaq Composite and S&P 500 to new peaks during an otherwise subdued pre-holiday trading session. The principal indices oscillated between modest gains and losses throughout the day before surging higher as the closing bell approached. The tech-centric Nasdaq climbed 0.8%, marking its 22nd record close in 2024, while the S&P 500 secured its 32nd high of the year with a 0.6% rise. The Dow Jones Industrial Average advanced 0.4%, gaining 162 points.

Fed Chair’s Remarks Leave Markets Unmoved

Stocks and bonds remained largely unaffected after Federal Reserve Chair Jerome Powell noted that the U.S. has made “significant progress” on inflation. Labor Department data indicated that the job market is gradually returning to pre-pandemic conditions. Speaking at a conference in Portugal on Tuesday. Powell refrained from suggesting that rate cuts are now warranted, which Wall Street has been eager for. “We want to be more confident that inflation is moving sustainably down before we start the process of easing policy,” he stated.

Investors Navigate Sparse Economic Data

Investors have been navigating through a lull in economic and corporate data ahead of the earnings season. Meanwhile, Wall Street is beginning to weigh the potential impacts of a possible second Trump administration following President Biden’s widely criticized debate performance last week. Recently, traders have been offloading U.S. government bonds. They speculate that proposed Trump policies, including tax reductions, could increase deficits and inflation. Should the Republicans secure both the White House and Congress. Some investors believe that a surge of new debt could strain bond markets and elevate borrowing costs.

Nvidia Prepares for Earnings Amidst Stock Volatility

As Nvidia gears up to release its first-quarter earnings report, the tech giant’s stock faces fluctuation…

Market Strategists Adjust Forecasts

“The probability of [a divided government] post-debate has likely diminished,” remarked Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management. “It’s logical that it’s beginning to be factored into market valuations now.” Benchmark 10-year Treasury yields, which had been climbing in recent days, dipped slightly on Tuesday to 4.435%.

Tesla Rally Highlights Trading Day

In the stock market, Tesla soared after the company reported a drop in vehicle deliveries for the second consecutive quarter, albeit less severe than analysts anticipated. Shares surged 10%, extending their winning streak to six days. Besides Nvidia, every other member of the so-called Magnificent Seven also saw gains.

Oil Prices Stabilize Amid Geopolitical Tensions

Brent crude stabilized near its highest level since April, closing at $86.24 a barrel. Traders have been snapping up oil in recent weeks. Rising tensions between Israel and Iran-backed Hezbollah have rekindled fears of broader conflict. Hurricane Beryl, the earliest Category 5 storm on record, has also raised concerns of a potent hurricane season that could impact energy ports along the U.S. Gulf Coast.

Upcoming Economic Data and Holiday Schedule

U.S. markets will close early Wednesday and remain closed Thursday for the Fourth of July holiday observance. On Friday, economists anticipate the monthly jobs report to reveal an addition of approximately 200,000 positions in June.

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