Investors bet that a higher-than-anticipated increase in inflation would not be enough to slow economic stimulus policies, as equities hit new highs and bond yields dropped. Consumer prices grew faster than expected last month, but investors speculated that the pace was not quick enough to justify any Federal Reserve policy reform. Bank stocks were hurt by the decline in yields. Nasdaq took a hit of (-1.05%) during the session.
The S&P 500 increased by (+0.33%) also. The Dow made a loss of (-0.20%).
Tesla delivered 184,800 new cars in the three months ending in March, up more than 100% from the same span last year and well ahead of Wall Street expectations of about 177,000 vehicles. Hence, Tesla shares soared on Monday after Canaccord Genuity upgraded the clean-tech carmaker’s ranking as it steps toward an “Apple-esque ecosystem” of energy goods.
- On Thursday, the US will release details on initial jobless claims, factory productivity, and retail sales.
- The government’s sale of 30-year bonds was met with high interest, extending Treasuries’ profits.
- Bitcoin hit an all-time high as the cryptocurrency market turned positive ahead of Coinbase Global Inc.’s IPO.
- GameStop and AMC, which fell 11% and 8.5% on Monday, respectively, failed to recoup losses on Tuesday, with Morgan Stanley predicting heightened uncertainty in the market’s speculative pockets in the months ahead.
- Tesla up 8.60% to close at $762.32.
- Danaher up 3.41% to close at $243.84.
- NVIDIA up 3.09% to close at $627.18.
- Newmont Goldcorp up 2.71% to close at $62.25
- Diamondback up 2.54% to close at $75.76.
- Alliance Data System down 5.35% to close at $105.72
- Franklin Resource down 5.25% to close at $27.75
- PVH down 4.25% to close at $108.29
- Synchrony Financial down 3.92% to close at $41.46.
- Micron down 3.60% to close at $92.15
- The first-quarter earnings of banks and financial companies such as JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, and Goldman Sachs Group Inc are expected to have an impact on the market performance.
- Consumer prices increased a higher-than-expected 2.6% in March, according to data released on Tuesday by the US Bureau of Labor Statistics, with fuel prices spiking 9.1% accounting for nearly half of the index’s price rise.
- Nairametrics, however, advises cautious buying in this era of growing uncertainties.