Market Recap – May 30th
US stocks began the shortened trading week on a mostly positive note as investors remained optimistic about the prospects of the debt-ceiling deal going through a divided Congress. The S&P 500 saw a gain of 0.51%, while the Nasdaq Composite, heavily weighted towards technology stocks, rose by 1.11%. In contrast, the Dow Jones Industrial Average remained relatively flat. This positive market sentiment reflects hopes that the hard-fought compromise on the debt ceiling will be successfully passed in the coming days. Looking at specific investments, we’re watching Ford and Tesla.
Shares of Ford Motor saw a boost of more than 2% after receiving an upgrade from Jefferies. The analyst expressed confidence in Ford’s strong plan and capable management, highlighting the potential for the company to narrow the gap with its competitors. As part of the upgrade, the price target for Ford’s shares was raised, indicating the possibility of a rally of more than 30%. Meanwhile, Tesla’s stock experienced a 3% gain in premarket trading. Reports revealed that CEO Elon Musk’s private jet arrived in China, suggesting his upcoming meetings with senior Chinese officials and a planned visit to Tesla’s Shanghai plant. Last week, Tesla and Ford made headlines with the announcement of a partnership that allows Ford owners access to Tesla Superchargers. This development further added to the positive sentiment surrounding Tesla.
Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio, or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.