Tech Rally Drives Wall Street Higher as Investors Eye Nvidia Earnings and Fed Outlook
US Stocks Close Higher as Tesla Surges on Autonomous Vehicle Optimism
US stocks closed mostly higher on Monday, with the tech-heavy Nasdaq 100 leading gains, driven by a significant rise in Tesla shares. The electric vehicle maker surged up to 9% following reports of potential regulatory easing on autonomous vehicles by the incoming Trump administration.
The Nasdaq 100 ended a five-day losing streak, rebounding from a significant drop the previous week. The S&P 500 saw slight gains, while the Dow Jones Industrial Average experienced a minor decline.
Last week’s market decline was influenced by Federal Reserve Chairman Jerome Powell’s comments on interest rates. Investors are now adjusting their expectations for a December rate cut, with probabilities decreasing after Powell’s remarks.
Market participants are closely watching Nvidia’s upcoming third-quarter earnings report, which is highly anticipated. Key economic data releases this week include housing starts, building permits, existing home sales, and initial jobless claims.
At the closing bell, the S&P 500 was up 0.4% at 5,893.62, while the Dow Jones Industrial Average fell 0.1% to 43,389.60. The Nasdaq composite rose 0.6% to 18,791.81.
In other market developments, Spirit Airlines filed for Chapter 11 bankruptcy, and Nvidia faces challenges with its next-gen GPU chip. Uber shares declined due to concerns over Tesla’s autonomous vehicle network.
Morgan Stanley maintained a bullish outlook on stocks, setting a 2025 target for the S&P 500.
In commodities, West Texas Intermediate crude oil rose to $69.14 a barrel, while Brent crude increased to $73.30 a barrel. Gold prices climbed to $2,612.70 an ounce. The 10-year Treasury yield decreased slightly, and Bitcoin saw a rise to $91,300.
As market sentiment continues to evolve, investors remain focused on upcoming economic data and corporate earnings reports to gauge the overall health of the economy and potential future market directions.
