Tesla is experiencing price fireworks: Wall Street continues to rise

Tesla is experiencing price fireworks
Wall Street continues to rise

The positive trend on the US stock exchanges continues with restrained momentum in the new week. Above all, Tesla shares are surging after the US electric car maker cleared an important regulatory hurdle for automated driving in China.

Investors on Wall Street started the new stock market week with momentum after the recent price gains. The Dow Jones Index ended trading with an increase of 0.4 percent to 38,386 points. The S&P 500 and the Nasdaq indices increased by a similar magnitude. Many actors preferred to hold back on new commitments given the important dates coming up over the course of the week. The focus is on May 1st, when the US Federal Reserve announces the decisions of its meeting. The US labor market report for April follows on Friday, and quarterly figures from important companies are also on the weekly calendar.

Support came from the bond market, where yields fell. On Friday, new price data from the USA did not bring any further unpleasant surprises, unlike the day before, when the deflator for personal spending in the first quarter was slightly higher than expected. Market participants do not expect a change in interest rates on Wednesday. Especially not after expectations of the first interest rate cuts have recently moved further and further back. Currently, with a majority – even a narrow one – the first downward move in interest rates is not expected until September.

Green light for Tesla in China

Tesla
Tesla 181.78

The Tesla stock shot up by a good 15 percent. The electric car maker has received Beijing’s blessing to temporarily launch its driver assistance service in China, according to several sources. Tesla will deploy its autonomous driving services based on mapping and navigation capabilities provided by China’s Baidu, the people said. Baiduwhich are also traded on the Nasdaq, gained 5.5 percent.

ford lost 0.3 percent. After two fatal accidents, the US Federal Motor Vehicle Safety Administration has opened an investigation into the safety of Ford’s automatic driving assistant. Apple rose by 2.5 percent with a buy recommendation from Bernstein.

Sofi Technologies fell by 10.5 percent. The digital financial services provider disappointed with its forecasts for adjusted sales and net profit, which outweighed good results in the reported quarter. The cinema chain AMC Entertainment (-11.1%) warned that the strikes by screenwriters and actors last year will have a negative impact on the first quarter figures.

The pizza chain Domino’s Again, we were pleased with good first quarter figures, with the share price rising by 5.6 percent. The Blackstone stock fell by 1.5 percent. In the bidding race for the British music rights holder Hipgnosis, the US investment company is once again ahead and outbid the music producer Concord with $1.57 billion.

Domino's Pizza Group Domino's Pizza Group
Domino’s Pizza Group 3.80

The fact that another US bank had to be “rescued” due to liquidity problems did not play a negative role across the board. US regulators have taken over regional bank Republic First Bancorp and sold it to competitor Fulton Financial. Fulton Financial rose in price by 7.6 percent. According to Fulton, the Philadelphia region will almost double in size, but will remain below the threshold that would have resulted in increased regulatory requirements.

Oil prices fell by a good 1 percent. Participants referred to new talks on a ceasefire in the Gaza Strip. This fueled speculation about a decreasing risk of oil supply disruptions in the region.

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