Janice R. Andrews
The Dow Jones Industrial Average rose more than 450 points during Monday afternoon trade, marking a notable day for the index. Notwithstanding Tesla’s continuous difficulties—Elon Musk’s electric car manufacturer is facing global price reductions and layoffs—this optimistic trend has persisted. Ahead of the expected earnings release tomorrow, Tesla’s stock kept plunging down.
But in the middle of Tesla’s problems, AI chipmaker Nvidia pulled off a stunning comeback from last week’s sharp drop, ranking among Monday’s best performers. Gains were also realized by other digital behemoths like Salesforce and Amazon. In addition, after the Bitcoin “halving” occurrence, equities tied to cryptocurrencies rose sharply, with MicroStrategy leading the way with an 11.5% increase.
In the meantime, the Federal Reserve chooses to be cautious and does not lower interest rates because inflation is still high.
Notable businesses including Microsoft, Meta (previously Facebook), and Alphabet (Google’s parent firm) are scheduled to release their financial results during a busy earnings week.
Just before the markets closed on Monday, the S&P 500 gained 1.1%, the Nasdaq gained 1.3%, and the Dow gained 326 points. But late Monday afternoon, Tesla’s stock price fell 3.1% due to the company’s persistent difficulties, making it one of the worst performers in the S&P 500 this year.
Furthermore, Nvidia’s shares recovered late Monday, gaining 4.2%, from the previous week’s decline brought on by Super Micro Computer’s statement about its impending earnings release.
Additionally, Verizon’s revenue somewhat grew but fell short of Wall Street projections, which caused the company’s stock price to decline by 4.7%. Similarly, after the most recent earnings reports, AT&T’s stock fell by almost 1.4%.
Investors are cautious despite successes and setbacks in a variety of industries as the market continues to negotiate earnings season and economic uncertainty.
