Stock Market Today: Tesla Leads Nasdaq and S&P 500 Higher with Major Gains
By Karen Friar, Ines Ferré, and Alexandra Canal
Updated: October 24, 2024, 4:22 PM
In an electrifying turn of events, Tesla (TSLA) experienced its best day in over a decade on Thursday, which in turn propelled the Nasdaq Composite and the S&P 500 indices upward. The surge came after the electric vehicle (EV) manufacturer reported surprisingly robust third-quarter earnings, driving investor optimism for a strong earnings season ahead.
Tesla’s Earnings Surge
Tesla’s quarterly performance surprised analysts and investors alike, as the company reported its largest profit in more than a year. Following the announcement, Tesla’s shares skyrocketed more than 20%, marking their most significant daily increase since May 2013. CEO Elon Musk’s optimistic forecast hinted at a potential growth in EV sales of 20% to 30% in the coming year, which further fueled investor enthusiasm.
The tech-heavy Nasdaq Composite rose approximately 0.8% while the S&P 500 concluded the day up about 0.2%, recovering from a brief dip earlier in the session. In contrast, the Dow Jones Industrial Average faced challenges, closing nearly 150 points down, reflecting a continued sell-off that originated the day before.
Broader Market Reaction
Despite Tesla’s success, the broader market showed signs of mixed performance. The Dow struggled following disappointing results from IBM, which saw shares decrease over 6% due to a miss in third-quarter revenue expectations. Meanwhile, Boeing’s shares declined around 1% as negotiations over a new pay deal with striking workers faltered, resulting in a staggering $6 billion quarterly loss for the aerospace giant.
The market also saw fluctuations in the bond arena, with the yield on the ten-year Treasury note falling to approximately 4.20%, having briefly exceeded 4.25% earlier in the week. This change occurred amid growing concerns that the Federal Reserve may not cut interest rates as swiftly as previously anticipated.
Job Claim Data Impacts
Further influencing market sentiment, official data released before the market opened indicated an unexpected drop in jobless claims to 227,000 last week, down from a revised 242,000 from the prior week. This data reflects ongoing volatility in states recently affected by hurricanes, adding another layer of complexity to the current market conditions.
Analysts Weigh In
As the market digested both corporate earnings and macroeconomic indicators, analysts provided insights into the significance of Tesla’s performance. Morgan Stanley analyst Adam Jonas commented on the current investor sentiment, noting that while Tesla often trades heavily on speculative ideas, the recent earnings report served as a potent reminder that maintaining a profitable automotive business remains a priority.
"This print reminds us that growing the auto business profitably remains a high priority for Tesla, even as the company shifts focus to AI developments," Jonas remarked.
Conclusion
As the stock market continues to navigate the challenges and opportunities presented by earnings reports and economic indicators, Tesla’s impressive day stands out as a beacon of optimism amid mixed results for other major companies. Investors will be looking closely at how these trends evolve in the coming weeks as earnings season progresses.
For more updates and insights, follow the ongoing coverage of the stock market and related news at Smart Money Mindset.
Share this article:
