Tesla Continues Surge US Stock Market Hits New Highs Cryptocurrencies Struggle to Regain Momentum
US stocks hit new highs again as S&P 500 and Nasdaq soar on the eve of Independence Day. Tesla (TSLA) stock surged by 6.54% for the third consecutive day. However, cryptocurrencies continue to struggle, with Bitcoin briefly dropping below 60K and Ethereum falling to 3,251 US dollars.
According to CNBC, the minutes from the June meeting of the Federal Reserve, released yesterday, showed that most members believe inflation is moving in the right direction but not fast enough to warrant a rate cut. The minutes reflected differing opinions from the 19 participating members, with some leaning towards a potential rate hike if necessary. However, the majority view is that the economy is gradually cooling, and the current policy is “restrictive”, a key term as officials weigh the degree of restrictive measures needed to reduce inflation without causing undue economic damage.
Since the meeting, Federal Reserve officials have maintained a cautious tone, emphasizing “data dependency” over predictions. However, several officials, including Chairman Powell, have indicated that continued encouraging inflation data will provide confidence for rate cuts.
The ADP employment report, often referred to as the “little non-farm report”, showed a modest increase of 150,000 private sector jobs in the US in June, down from 157,000 in the previous month and below the expected 165,000, signaling a potential slowdown in labor market momentum.
US markets closed early yesterday in observance of Independence Day, with the S&P 500 and Nasdaq hitting new closing highs. Tesla (TSLA) stock surged by 6.54% for the third consecutive day.
Tesla’s stock has recently seen a turnaround, despite the overall automotive market not yet recovering and facing competition from low-priced Chinese electric car manufacturers. While major tech giants have been hitting new highs, Tesla has been on the decline over the past year. However, a recent surge in the stock price follows the announcement of second-quarter delivery numbers, which, despite a 4.7% decrease compared to the same period last year, exceeded analyst expectations, leading to a more than 10% surge in the stock price. Additionally, CEO Elon Musk is scheduled to speak at the “World Artificial Intelligence Conference” (WAIC) in Shanghai, where he is expected to showcase the Cybertruck and the new generation robot Optimus Gen 2.
Tesla’s stock price has surged for three consecutive days, with a nearly 38% increase in the past month.
