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Stocks End Higher as Relief Rally Is Sparked by Fed’s Bostic
Stocks rose in an afternoon rally Thursday as traders sought to overcome concerns about rising interest rates.
The Dow Jones Industrial Average gained 343.28 points, or 1.05%, on the day. Salesforce boosted the Dow, rising 11% on the back of a strong quarter and positive outlook.
The S&P 500 rose 0.76%, erasing losses after Atlanta Federal Reserve President Raphael Bostic stated that he is “firmly” in favor of maintaining quarter-point hikes.
The Nasdaq Composite increased by 0.73%. Earlier in the day, the tech-heavy index was also down.
The DJIA closed today’s session at 33,003.57, or +341.73.
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Gold Rallies as Chinese Business Activity Reaches Pre-Pandemic Levels
Eurozone Inflation Falls Marginally Lower
Inflation in the eurozone tailed off in February, however at a slower pace than the ECB had forecasted.
The annual rate of inflation in the European economic area came in at 8.5% last month, 0.1% lower than February’s figure.
Core inflation on the other hand moved higher, climbing to 5.6% in February, from 5.3% the month prior.
ECB continues to suggest that it will take time to reach the 2% target, with many expecting a 50-basis point hike later in March.
EURUSD sold-off on today’s news.
Tesla’s Investor Day Comes up Short on Specifics
Tesla’s stock dropped 6% following the company’s investor day, which some thought lacked specifics.
The meeting took place in Texas after yesterday’s closing bell, with Elon Musk maintaining his plans to make affordable electric vehicles in the future.
Nonetheless, attendees at Investor Day were disappointed by the lack of information provided about Tesla’s next-generation vehicles.
Musk stated that, “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.”
In order to achieve this goal, Tesla is forecasting it will cut assembly costs by half in the future. However, Musk failed to commit to a timeline for this.
$TSLA ended today’s session in the red by 5.85%
“The stock market is a device for transferring money from the impatient to the patient.”
Warren Buffett
