The Nasdaq (^IXIC) jumped on Thursday to lead a rebound in US stocks as Tesla’s (TSLA) surprisingly solid results and high-flying sales forecast lifted hopes for a strong earnings season.
The tech-heavy Nasdaq Composite (^IXIC) gained about 0.6%, leading the way higher, while the benchmark S&P 500 (^GSPC) added around 0.3%. The Dow Jones Industrial Average (^DJI) fell more than 100 points, or nearly 0.3%.
Tesla kicked off “Magnificent Seven” earnings with its biggest quarterly profit in over a year, driving a wave of optimism that set stocks up for a comeback from Wednesday’s sharp losses.
Shares in Tesla surged over 14% — adding over $80 billion in market cap — as investors welcomed CEO Elon Musk’s forecast that EV sales could grow 20-30% next year. Amazon (AMZN), Meta (META), and other tech megacaps ticked higher after lagging the previous session.
Elsewhere in corporates, Boeing (BA) shares sagged nearly 2% after striking workers rebuffed its pay deal, on the heels of planemaker’s $6 billion quarterly loss. It’s the latest in a string of rough news for stocks on the Dow.
Meanwhile, the 10-year Treasury yield (^TNX) fell back after topping 4.25% on Wednesday amid worries that the Federal Reserve won’t cut interest rates as quickly as anticipated. The yield dropped to 4.22%, losing hold of levels not seen since July.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Official data released before the open showed the number of jobless claims unexpectedly fell to 227,000 last week, versus the upwardly revised 242,000 the week before. Filings have seen volatility in states recently hit by hurricanes.
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