Tech stocks experienced a surge on Wednesday morning, outpacing the broader market as investors welcomed Tesla’s pledge to introduce more affordable cars and awaited the next wave of corporate earnings.
Futures on the tech-heavy Nasdaq 100 (^NDX) rose approximately 0.5%, bouncing back from a significant closing gain. S&P 500 (^GSPC) futures edged up 0.1%, extending a rebound from its longest losing streak of 2024, while Dow Jones Industrial Average (^DJI) futures hovered around the flatline.
Tesla (TSLA) shares soared after the electric vehicle maker announced plans to accelerate the release of cheaper models, overshadowing its quarterly earnings and revenue miss. This news buoyed investors concerned about growth prospects amidst Tesla’s shift towards robotaxis and the cancellation of a lower-priced model.
The results from the first “Magnificent Seven” companies to report earnings have heightened expectations for Big Tech’s performance, fueling hopes that these megacaps can reignite the stock rally. All eyes are now on Meta’s (META) earnings report, scheduled for after the market close. Shares of the social media giant rose following a Senate vote potentially banning rival platform TikTok. Microsoft (MSFT) and Alphabet (GOOG) are next in line to report on Thursday.
In other news, Boeing (BA) is expected to announce earnings early Wednesday following a quarter marked by a high-profile plane failure that resulted in regulatory restrictions on production. Additionally, updates from AT&T (T), IBM (IBM), and Ford (F) are on the docket, among many others.
Tesla’s announcement of faster release schedules for more affordable models propelled tech stocks higher, overshadowing concerns about its quarterly performance. Strong results from the initial “Magnificent Seven” companies reporting earnings have heightened optimism for the broader tech sector, with Meta’s report eagerly awaited. Investors are closely monitoring Meta’s earnings after the Senate’s move to potentially ban TikTok, which could impact the competitive landscape in the social media sector.
The surge in tech stocks reflects investors’ optimism fueled by Tesla’s commitment to more affordable vehicles, setting the stage for a dynamic market ahead.
