Money

Markets are on a winning streak, so why is Tesla struggling?

Published

2 years ago

January 26, 2024

The S&P 500 extended its remarkable winning streak, reaching an all-time high for the fifth consecutive session, fueled by robust U.S. economic growth data for the fourth quarter.

Meanwhile, electric vehicle giant Tesla faced a significant setback as it tumbled in response to a disappointing sales forecast.

This recent surge in the S&P 500 marks the first time in two years that it has achieved record highs, driven by optimism about the economy, lower interest rates, and growing investments in artificial intelligence.

Tesla experienced a sharp decline of 12%, hitting its lowest point since May 2023.

Impacted margins

CEO Elon Musk’s warning of slower sales growth in the coming year, despite price reductions that have negatively impacted margins, contributed to this decline.

As a result, Tesla’s market value dropped to approximately $580 billion, falling below Eli Lilly (LLY.N) and just above Broadcom (AVGO.O).

Contrary to predictions of a recession following the Federal Reserve’s aggressive interest rate hikes, the U.S. economy exhibited faster-than-expected growth in the December quarter, with a full-year growth rate of 2.5%.

Strong consumer spending played a pivotal role in this economic resilience.

Jobless claims

Additional data revealed that initial jobless claims for the week ending January 20 rose to 214,000, exceeding the estimated figure of 200,000.

Investors are eagerly anticipating quarterly results from tech giants such as Apple (AAPL.O), Microsoft (MSFT.O), Amazon (AMZN.O), Alphabet (GOOGL.O), and Meta Platforms (META.O) in the coming week, which will provide insights into whether their high valuations are justified after significant stock surges since 2022.

EV losses

Following Tesla’s quarterly report, other electric car manufacturers also experienced losses. Rivian Automotive (RIVN.O) dropped 2.2%, and Lucid Group (LCID.O) fell by 6.7%.

American Airlines (AAL.O) reported a 10.3% increase as it predicted upbeat annual profits.

Highest consumer financial stress level in three years

Among the S&P 500 companies that have reported earnings thus far, an impressive 82% have exceeded expectations, surpassing the long-term average beat rate of 67%.

Boeing (BA.N) faced a 5.7% decline after the U.S. Federal Aviation Administration prohibited the troubled planemaker from expanding the production of its 737 MAX narrowbody planes.

Advancing stocks outnumbered declining ones within the S&P 500 (.AD.SPX) with a ratio of 4.0 to one. The S&P 500 marked 50 new highs and two new lows, while the Nasdaq recorded 97 new highs and 119 new lows.

Money

Australia’s sharemarket set for weakest annual return in three years

Australia’s sharemarket set for weakest return in three years; gains from gold and critical minerals offset blue-chip losses.

Published

5 hours ago

December 22, 2025

Harvey Vargas

Australia’s sharemarket set for weakest return in three years; gains from gold and critical minerals offset blue-chip losses.

Australia’s sharemarket is on track for its weakest annual return in three years, with the S&P/ASX 200 Index expected to finish 2025 up around 6 per cent. Investors are feeling the impact of major losses from blue-chip companies, including Commonwealth Bank and CSL, which have dragged overall performance.

Despite the slow year, certain sectors provided a boost. Gains were largely driven by surging gold prices and rising interest in critical minerals, helping offset some of the losses from larger companies.

Smaller companies in the resources sector outperformed their larger counterparts, highlighting a shift in investor focus towards niche opportunities and high-demand commodities.

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Money

US stocks surge amid AI hype despite market volatility

US stock market bounced back, S&P 500 up 16% in 2023, driven by AI excitement amid policy uncertainties.

Published

7 hours ago

December 22, 2025

Harvey Vargas

US stock market bounced back, S&P 500 up 16% in 2023, driven by AI excitement amid policy uncertainties.

The US stock market has experienced a rollercoaster year, with the S&P 500 nearly entering a bear market in April due to tariff concerns. Investor sentiment shifted following policy changes from President Trump, setting the stage for a dramatic rebound.

By June, the S&P 500 was hitting new records, fueled by excitement over artificial intelligence and its impact on the tech sector. Corporate profit forecasts improved, contributing to an overall annual gain of 16%, despite ongoing market fluctuations.

Yet, the S&P 500 still trails international markets, reflecting lingering policy uncertainties in the US.

Investors are watching closely to see how domestic and global factors will shape the next year.

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Money

Stocks rally ahead of Thanksgiving as markets log four days of gains

Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.

Published

4 weeks ago

November 27, 2025

Harvey Vargas

Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.

Markets are moving into the Thanksgiving break with strong momentum, as stocks notch four straight days of gains. The Dow Jones Industrial Average jumped 388 points, while the S&P 500 added 0.9%, pushing both indexes toward their best week since June.

Oracle led major movers, rising more than 4% after Deutsche Bank reaffirmed its bullish outlook on the tech giant. Broad investor optimism continues building across sectors as economic data softens and earnings remain resilient.

All eyes are now on the Federal Reserve and what potential shifts in interest-rate policy may mean for the markets. U.S. markets will close Thursday for the Thanksgiving holiday and reopen Friday for a shortened trading session.

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