Shares of AI and Tesla Propel S&P, Nasdaq Surge Amid Inflation Concerns

Wall Street kicked off the week with gusto as all major U.S. indices surged, fueled by investor excitement over AI-driven stocks.

The S&P 500 saw a substantial jump of close to 1%, while the Nasdaq 100 led the charge, climbing 1.3% to cross the 18,000-point mark. Despite this broad market rally, small-cap stocks experienced a slight dip, emphasizing the selective nature of the upward trend.

AI and Tesla Propel S&P, Nasdaq Surge Amid Inflation Concerns
Treasury yields advanced to 4.33%, oil prices up 1.4% to $82/barrel. (Credits: Unsplash)

Treasury yields made gains, with the 10-year note reaching 4.33%, indicating investor confidence in ongoing economic expansion and potential inflationary pressures.

Simultaneously, oil prices remained robust, with West Texas Intermediate (WTI) crude oil rising by 1.4% to nearly $82 per barrel, reflecting strong market momentum and potential geopolitical factors influencing energy markets.

In standout performances, Tesla Inc. surged by nearly 6%, driven by announcements of price increases for its Model Y in the U.S. and Europe, making it the top performer of the day in both the S&P 500 and Nasdaq 100.

AI and Tesla Propel S&P, Nasdaq Surge Amid Inflation Concerns
Tesla soared 6% on Model Y price hikes, PepsiCo gained 4%, SAIC and Shift4 declined. (Credits: Unsplash)

PepsiCo Inc. was also impressed with a more than 4% gain, marking its strongest daily performance since April 2020, bolstered by upbeat sales forecasts from Morgan Stanley analysts.

Conversely, Science Applications International Corp. and Shift4 Payments Inc. faced setbacks, with shares dropping by nearly 10% and 9%, respectively, due to earnings disappointments and concerns about valuation.

Market attention now turns to the upcoming earnings reports from Embraer S.A. and StoneCo Ltd., which could further shape market dynamics.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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