S&P 500 and Nasdaq Reach New 2023 Highs: Tesla Leads the Charge

On June 9th, the S&P 500 finished the day at a higher point than where it began, although it didn’t reach its highest point during the day. Despite a rally from Tesla, the overall stock market failed to respond strongly in anticipation of the upcoming Federal Reserve policy meeting and inflation data next week.

The stocks of Tesla Inc (TSLA.O) increased by 4.06%, which marked their longest stretch of success since January 2021. This was due to General Motors Co (GM.N) reaching an agreement to utilize Tesla’s Supercharger network. The shares of GM (GM.N) also rose by 1.06%.

Some market participants claim that the benchmark S&P 500 (SPX) has entered a new bull market, as it has further increased by 20% since its finishing low on October 12th.

According to Tim Holland, who serves as the chief investment officer at Orion OCIO, this could be considered as the most detested bull market ever.

The mood was very low at the end of the year and is still negative.

The S&P 500 index increased by 4.93 points (0.11%) to reach 4,298.86, extending its winning streak to four weeks and reporting a gain of 0.38% this week. This marks the longest streak since the July-August 2022 period. The Nasdaq Composite index also saw its seventh consecutive week of growth, adding 20.62 points (0.16%) to reach 13,259.14 on the day with a weekly gain of 0.13%. The Dow Jones Industrial Average index rose by 43.17 points (0.13%) to reach 33,876.78, reporting a weekly gain of 0.33%.

Wall Street has been upheld this year, despite fears of a forthcoming recession and persistent inflation, thanks to a rally in megacap stocks, a successful earnings season that exceeded expectations, and the belief that the Fed was close to finishing its cycle of raising interest rates.

The stocks of technology firms like Apple Inc (AAPL.O), Advanced Micro Devices (AMD.O) and Nvidia Corp (NVDA.O) went up by 0.22% to 3.20% after experiencing a decrease in value earlier this week.

According to CMEGroup’s Fedwatch tool, traders believe there is a high probability of the U.S. central bank keeping interest rates stable at the current range of 5%-5.25% during its policy meeting on June 13-14.

According to Rick Meckler, who is a partner at Cherry Lane Investments, the general mood of the market is that the Federal Reserve will halt its increase. This pause will likely result in a broader increase in the market and potentially allow other companies to catch up to the previously leading large-cap tech stocks.

The release of consumer prices data on Tuesday will have an impact on how people anticipate the Federal Reserve’s next actions. Currently, traders are assuming that there is a 50% probability of an additional increase of 25 basis points in interest rates in July.

Before partially recovering, the CBOE Volatility index (.VIX), also called the fear gauge of Wall Street, dropped to its lowest point since February 2020.

After Citi lowered its rating of Target Corp (TGT.N) to “neutral,” the large retail company experienced a 3.26% decrease. Citi cited economic difficulties and predicted that sales may decline even more this year.

After being upgraded by Wells Fargo to “overweight,” Adobe Inc (ADBE.O) saw a 3.41% increase. This is because the bank believes the company’s Photoshop software will greatly benefit from the surge in generative artificial intelligence.

Netflix Inc (NFLX.O) saw an increase of 2.60% in its stock price after a report revealed that the company’s number of subscribers rose as a result of taking action against password sharing.

On the NYSE, the number of stocks that decreased in value was higher than those that increased, with a ratio of 1.49-to-1. The same trend was observed in Nasdaq, with a ratio of 1.84-to-1 favoring decliners.

The S&P 500 marked 15 instances of reaching its highest price in a 52-week period while only experiencing 5 instances of reaching its lowest price. On the other hand, the Nasdaq Composite achieved 84 new high prices over the last 52 weeks but also reached 53 new lows during the same time period.

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