On Wednesday, S&P 500 and Nasdaq futures experienced gains, fueled by a resurgence in growth stocks and positive earnings reports. Investors were particularly enthusiastic about Tesla’s announcement of plans to introduce affordable models, which led to a 9.9% pre-market jump in the electric vehicle manufacturer’s share prices. Other electric vehicle stocks, such as Lucid Group, Nikola, and Nio, also experienced gains.
Growth stocks in general saw upward momentum, with Amazon.com, Microsoft, and Nvidia rising by percentages ranging from 0.3% to 1.6%. Meta Platforms and Snap also made notable gains of 1.7% and 2.1%, respectively, following the US Senate’s approval of a bill that could potentially ban TikTok in the United States if its Chinese parent company, ByteDance, fails to divest the short video platform.
The positive sentiment in the market extended to other sectors as well. Visa surged by 2.8% in pre-market trading after surpassing Wall Street estimates in its second-quarter results, indicating that consumers remain resilient despite concerns about economic slowdown. Texas Instruments also climbed 7.3% after the chipmaker’s positive second-quarter revenue forecast, suggesting growing demand for its analog semiconductors. Arm Holdings, Micron Technology, and Advanced Micro Devices also experienced gains, ranging from 1.4% to 3.6%, reflecting the positive sentiment surrounding chip stocks.
The overall market recovery from last week’s decline, which was attributed to geopolitical tensions in the Middle East and revised expectations for Federal Reserve rate cuts, suggests that investors are regaining confidence. The upcoming corporate earnings season and economic data releases, particularly the Personal Consumption Expenditures (PCE) index for March on Friday, will provide further insights into the market’s trajectory.
