Markets Continue Rally, TSLA Hits $1T Valuation
European stock markets opened broadly higher on Tuesday, following Monday’s momentous US trading session which saw the S&P 500 and the Dow Jones Industrial Average hitting all-time highs, moves that indicated the bullish run is likely to continue despite supply chain issues and inflation fears.
The DAX saw the widest early morning gains, rising 70 points (0.45 percent) as of 8:43 a.m. GMT. France’s CAC was up 0.4 percent, while the STOXX600 gained 0.24 percent. Europe’s gains followed a largely positive day in Asia which saw Japan’s Nikkei 220 jump as much as 2 percent, and South Korea’s Kospi rising 0.94 percent. China’s benchmark indexes, the Shanghai Composite and the Shenzhen Composite were down 0.34 percent and 0.3 percent respectively.
The gains in Asia and Europe came after a whirlwind day on Wall Street on Monday which was prompted by positive earnings reports as well as some interesting news pieces. Specifically, shares of EV carmaker Tesla (NASDAQ: TSLA) jumped 12.55 percent to trade at $1,024.86 on news that car rental company Hertz has signed an agreement to purchase 100,000 Teslas to add to its rental fleet. The automaker’s stocks failed to respond as positively last week despite its earnings report last Wednesday which showed that the company beat both the top and bottom lines, an announcement which surprised analysts by resulting in a modest price decline for the stock despite the solid performance. Tesla’s price movement on Monday put the company’s valuation at $1.01 trillion, and helped Tesla replace Facebook as the fifth-largest U.S. company by market cap. Facebook had previously reached a $1 trillion valuation but is now valued at approximately $930 billion. The social media company’s share price has fallen steeply in recent trading sessions due to privacy issues and concerns about changes in iOS policies that may impact the way Facebook monetizes its ad revenue.
The S&P has risen 6 percent so far in October, and with the end of the month nearing, it is looking to enjoy its best month since November 2020. In fact, despite concerns about the rising costs of labor and materials, many analysts expect the stock market rally to continue through the end of the year. Wall Street futures are higher, and dozens of companies will be releasing their earnings later today, including behemoths Microsoft, Visa, and Alphabet.