Nasdaq Hits A Record High Based On Tesla’s Rise

The U.S. stock market’s Nasdaq index climbed to a record closing high recently, driven by the rise in Tesla’s stock price. Although investors are pleased with the data showing that U.S. manufacturing activity reached a record high in June, the benchmark of the General 500 Index is still falling.

Nvidia and Facebook stock prices rose, continuing the recent rebound momentum of high-end growth stocks. In recent months, investors have no longer favored these stocks but have focused on companies that are expected to perform well in the economic recovery from the epidemic.

Data provider HIS Market announced that the initial value of the US Manufacturing Purchasing Managers Index (PMI) rose to 62.6 this month, higher than the estimated 61.5, but manufacturers still have difficulty obtaining raw materials and qualified workers, which has pushed up prices significantly.

In a recent development, Fed Chairman Powell reiterated that the Fed would not raise interest rates too quickly because of concerns about inflation. Before Powell made the above remarks, the Fed predicted a week ago that it would raise interest rates as early as 2023, which was earlier than expected. Since then, growth stocks, including major technology stocks such as Tesla and Nvidia, have mostly risen, outperforming value stocks such as banks and materials companies.

Eight of S&P’s 11 major stocks fell. Utility stocks fell about 1%, leading the market, followed by raw materials stocks, which fell 0.6%. Shares of electric car maker Tesla rose 5.3% after the company said it had opened a solar charging station with on-site energy storage in Lhasa, the capital of Tibet. This is the company’s first such facility in China. The company’s share price decline in 2021 has dropped to around 7%.

The S&P 500 growth stock index edged up 0.01%, while the value stock index fell 0.24%, continuing investors’ recent preference for growth stocks. The Dow Jones Industrial Average came down 0.21% to close at 33,874.24 points; the S&P 500 index fell 0.11% to close at 4,241.84 points. The Nasdaq index climbed 0.13% to close at 14,271.73 points. The S&P 500 index has risen about 13% so far in 2021, and the Nasdaq and Dow have risen about 11%.

Electric vehicle and hydrogen car maker Nikola rose 4.3% after the company said it would invest US$50 million in Wabash Valley Resources LLC to produce clean hydrogen for its zero-emission trucks in the Midwest. Among the Internet celebrity stocks, software company Alfi plunged 26%. The market value of the previous trading day more than doubled. Torchlight Energy Resources plummeted for the second consecutive day, down 30%, after announcing that it would issue additional shares.

A total of approximately 9.3 billion shares were traded on US stock exchanges, while the average daily trading volume over the past 20 trading days was 11.1 billion shares. The ratio of the stocks to losers on the New York Stock Exchange was 1.14:1, and that on the Nasdaq market was 1.42:1. 33 S&P 500 index stocks hit a 52-week high; no constituent stocks hit a new low; 91 Nasdaq index stocks hit a new high, 28 hit a new low.

ByMahendra D

Jun 28, 2021 , ,