Equity Markets Surge Kickstarting Federal Reserve Week: Today's Stock Market Performance
In the bustling world of global finance, several significant events unfolded this week. Top officials from the United States and China are engaged in ongoing trade talks, with President Trump posting on his Truth Social account that the meeting is going well. The U.S. President is expected to meet with Chinese President Xi Jinping this Friday to discuss the terms of a deal, possibly referring to TikTok.
Meanwhile, in the corporate sphere, Tesla CEO Elon Musk made headlines with his largest insider stock acquisition ever. Musk purchased 2.57 million TSLA shares for roughly $1 billion, a move that has been met with optimism from analysts like Daniel Ives of Wedbush. Ives reiterated his Outperform (Buy) rating and $500 price target on Tesla, representing an implied upside of 22% to current levels. Ives also believes that Musk's new pay plan, announced earlier this month, is a relief for investors as it confirms Musk will remain CEO of Tesla until at least 2030.
The AI Revolution and the Robotaxi opportunity are seen as crucial growth phases for Tesla by Ives, who foresees these developments becoming a reality. Tesla's stock was up more than 7% at its intraday high before paring this gain to 3.6%.
In a separate development, Nvidia found itself embroiled in a preliminary investigation regarding its 2020 acquisition of Mellanox. The company, however, maintains that it complies with the law and will continue to cooperate with relevant government agencies. The investigation results were released on the day of U.S.-China trade negotiations, and Treasury Secretary Scott Bessent discussed the poor timing of the investigation with Chinese officials during the talks. As a result, Nvidia shares slipped 0.04% today.
On the market front, the Dow Jones Industrial Average closed at a record high of 45,883, up 0.1%. The S&P 500 also reached a new record high, closing at 6,615, up 0.5%. The Nasdaq Composite also saw a rise, closing at 22,348, up 0.9%.
However, not everyone is convinced about the Federal Open Market Committee's decision to cut rates. Jonathan Millar, senior U.S. economist at Barclays, doubts the FOMC will lower the federal funds rate by 50 basis points. According to CME FedWatch, there is a 96% chance the FOMC will cut rates by a quarter-percentage point at the September meeting. President Trump, on the other hand, wrote on Truth Social that interest rates should be cut now and bigger than initially planned.
These market fluctuations and international negotiations serve as a reminder of the dynamic and interconnected nature of global finance. As these events continue to unfold, investors and analysts alike will be keeping a close eye on developments in both the corporate and political spheres.
Read also:
- Show a modicum of decency, truly
- Latest updates for July 31: Introduction of Ather 450S with expanded battery, unveiling of new Tesla dealership, and additional news
- VinFast's debut EV plant in India, Tata Harrier EV distribution starts, next-gen Mahindra Bolero sightings caught on camera
- Tesla-powered residences in Houston create a buyers' frenzy
