Wall Street: S&P 500 and Nasdaq closed with slight rises driven by Tesla

The main indices of Wall Streetclosed higher this Friday, June 9, driven by the rise of Tesla, in a context in which investors remain cautious awaiting the US inflation data and the meeting of the Federal Reserve from United States.

The index S&P 500 gained 4.93 points, or 0.1%, to 4,298.86 units, while the nasdaq it rose 20.62 points, or 0.2%, to 13,259.14. Meanwhile, the Industrial Average Dow Jones added 43.17 points, or 0.1%, to 33,876.78 units.

The actions of Tesla Inc. increased from 4% after General Motors agreed to use the company’s Supercharger network. On the other hand, the actions of GM advanced 1%.

Thursday, the S&P 500 closed 20% above its low closing date of October 12, which some market participants consider the start of a new market bullish.

“It is perhaps the most hated bull market in the history of bull markets,” he said. Tim Hollandinvestment director of the platform Orion LEISURE. “Sentiment was terribly depressed at the end of the year and remains bearish,” he added.

A rally in mega-cap stocks, a better-than-expected earnings season and expectations that the Federal Reserve is nearing the end of its rate-hike cycle have supported Wall Street this year despite concerns about a impending recession and inflation.

What the market expects

Market operators consider that there is 73% chance that the Fed keeps rates stable in the range of 5% to 5.25% June 14. This would mark the end of its most aggressive cycle of increases since the 1980s. Bets in favor of a pause were supported by data showing an increase in the number of applications for unemployment benefits in the United States, indicating an easing in the labor market and could further curb inflation.

Furthermore, investors expected the Fed to temporarily halt its campaign of rate increases due to concerns on the liquidity of the market, generated by the negotiations on the US debt ceiling. “We are all worried about liquidity,” said Invesco’s Ben Jones.

For US Treasuries, two-year yields, which are highly sensitive to monetary policy expectations, rose 4 basis points to 4.56%, while the yields of the 10-year notes improved by 4 basis points, standing at 3.753%.

The rally of large-cap stocks, better-than-expected corporate results and expectations that the Federal Reserve is nearing the end of its rate-hike cycle have supported Wall Street this year, despite fears of an impending recession and persistent inflation.