U.S. indices rise as inflation expectations grow
Several Indices in the United States rallied to record highs to start the trading week, as inflation expectation data was revealed.
The study, which was conducted by the New York Federal Reserve, showed that median inflation expectations rose for the 8th consecutive month to 4.8% in June.
Today’s rise was up from the reading of 4.0% the month before and cements a new high in expectations since the inception of the survey in 2013.
Overall, the report showed that consumers were bullish for a post-pandemic recovery, led by an expectation for strong labor recovery.
Monday’s report helped both the S&P 500 and NASDAQ record new all-time highs of 4,384.63 and 14,733.24 respectively while the Dow crossed 35,000 before closing at 34.996.
Tesla shares climbs despite Musk testimony
Tesla CEO Elon Musk was summoned today to testify in court, regarding the company’s 2016 acquisition of SolarCity.
A group of Shareholders in Tesla alleged that Musk had pushed through the takeover of Solar City, due to his own involvement in the company, and not in the best interest of Tesla.
These allegations were followed by a suit, which sued both Musk and his fellow board members of breaching fiduciary obligations
Board members had already settled late last year for a sum of $60 million, however, Elon Musk on the other hand chose to contest the case.
Despite today’s testimony, shares in Tesla were trading higher, rising by $28.75 (4.38%) on the day.
Virgin stock crashes as Branson lifts off
Shares in Virgin Galactic were down by as much as 20% on Monday, despite founder Richard Branson beating his billionaire rival Jeff Bezos to successfully launching into space.
Over the weekend, Branson was a part of a group of 6 Virgin Galactic employees who were on board the test flight, for the company which aims to be a leading operator of space tourism.
Speaking on re-entry, Branson stated that, “We’re here to make space more accessible to all, welcome to the dawn of a new space age“.
Despite this milestone shares in the company were trading lower on Monday and were down 17% at the close. This move-in isolation seems counter-intuitive, but Virgin used the backdrop of the successful flight to announce the sale of up to $500m of new stock in a secondary offering.
Many now wait to see how Bezos and Amazon do, when their test flight launches later this week.
Quote of the day – “Losses are necessary, as long as they are associated with a technique to help you learn from them”– David Sichuan
Senior Market Analyst