- S&P 500 closes above 5,500 for the first time
- Tesla’s stock surge drives the Nasdaq to new records
- Federal Reserve hints at potential rate cuts amid inflation progress
Record-Breaking Market Close
The S&P 500 ended up at 5,509.01, its 32nd record close of 2024, while the Nasdaq Composite rose 149.46 points, ending at 18,028.76 to score its 22nd record close of the year, according to Dow Jones Market Data. Instead, the Dow Jones Industrial Average ended up 162.33 points to finish at 39,331.85, the largest gain in more than a week.
Tesla’s shares recorded a significant increase of more than 10% after the electric car giant surprised investors with a better-than-expected second-quarter delivery report.
In the second quarter of the year, Tesla Motors delivered 443,956 electric vehicles, exceeding the expected 438,019 units.
Federal Reserve’s Inflation Outlook
In a recent Speech, Federal Reserve Chair Jerome Powell said “The Fed has made quite a bit of progress and in bringing inflation back down”
He emphasized that although inflation is falling, it is too early to cut interest rates. Powell’s comments led to a drop in Treasury yields, further supporting the stock market.
Traders now see a 65% chance of a rate cut in September, up from about 64% last week, according to Fed Rate Monitor Tool.
What does this mean for the stock market?
Recent stock market performance indicates of investor optimism, driven by solid corporate earnings, particularly those of Tesla.
Moreover, economic signals are positive.
While the Federal Reserve continues to monitor inflation and labor market developments, market participants remain optimistic about the potential for further rate cuts, which could provide additional support to market growth.
