NASDAQ 100, Dow Jones, S&P 500: Tech Stocks Surge as Tesla Shines, Apple Faces Production Concerns

Highlights

• Nasdaq rises on Tesla’s record second-quarter vehicle deliveries.
• Electric vehicle stocks rally following Tesla’s positive news.
• Apple experiences a slight dip as production concerns emerge.

Overview

The Nasdaq started the week with gains as Tesla announced record second-quarter vehicle deliveries, propelling the tech-heavy index on a positive trajectory for the second half of the year. In contrast, the S&P 500 remained relatively flat, marking the beginning of a holiday-staggered week in the US markets. The Dow Jones Industrial Average opened with a slight decline of 0.11%.

At 13:47 GMT, the blue chip Dow Jones Industrial Average is trading 34365.48, down 42.12 or -0.12%. The benchmark S&P 500 Index is at 4448.78, down 1.60 or -0.04% and the tech-heavy Nasdaq Composite is trading 13822.04, up 34.11 or +0.25%.

Tesla’s impressive delivery stats sent its stock soaring 5% higher, surpassing expectations with a remarkable 83% increase compared to the previous year and a 10% rise from the first quarter. This positive news had a ripple effect, causing other electric vehicle stocks to rise as well. Rivian, Fisker, and Lucid experienced gains of 2.9%, 4.4%, and 2.2% respectively. China-based Xpeng also reported beating delivery forecasts and recorded a 27% quarter-on-quarter increase, leading to a rise of approximately 7% in its stock. Nio and Li Auto saw solid delivery numbers, resulting in increases of more than 4% for each.

Apple Dips While Tech Shares Firm

The Nasdaq’s remarkable performance in the first half of the year, along with the substantial gains in the 10 biggest US digital and tech stocks, has set high expectations for the macro economy in the second half. Despite these positive developments, Apple faced a slight dip in its stock after news broke that the company would be scaling back production forecasts for its Vision Pro headset due to design complexity. Apple had recently surpassed a $3 trillion market capitalization milestone.

US-China Talks and Labor Market Focus Shape Economic Outlook

Looking ahead, US Treasury Secretary Janet Yellen is scheduled to visit Beijing this week, while the final June US manufacturing readout is expected to align with global surveys. Economic focus will shift to the labor market, with the release of June national payrolls and related reports. Despite easing core inflation in May, markets are pricing in further interest rate increases this year due to the prevailing tight jobs market. Two-year Treasury yields reached their highest level in nearly four months, while the 2-to-10-year yield curve inverted to its most significant extent in over 40 years.