Money

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

Published

2 years ago

January 26, 2024

ticker NEWS

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

Are we in an AI bubble or just a market reality check?

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Published

3 days ago

November 6, 2025

Ahron Young

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Global tech stocks are losing altitude as investors question whether the AI boom has gone too far — or if the market is simply returning to earth after years of euphoric growth. With valuations for chipmakers and AI giants stretched to perfection, analysts warn that expectations may finally be colliding with economic reality.

In this segment, Brad Gastwirth from Circular Technologies joins us to unpack the trillion-dollar question: is this a healthy correction or the first crack in the AI gold rush? From hyperscaler capex surges to regulatory risks and fragile market leadership, he breaks down what’s driving investor nerves.

We also explore how the market rotation into gold and real assets reflects growing caution, and what this could mean for the future of AI-driven investing.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#AIBubble #TechStocks #MarketCorrection #Semiconductors #Investing #FinanceNews #AIStocks #TickerNews

Money

Inflation rise reduces chances of Reserve Bank rate cut

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

Published

1 week ago

October 29, 2025

ticker NEWS

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.

The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.

The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.

Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.

The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.

Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.

The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.

Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.

Economic Pressures

Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.

Money

Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

Published

2 weeks ago

October 26, 2025

Ahron Young

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.

U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.