The US stock market ended little changed on Wednesday after a shortened trading session due to the Independence Day holiday.
Tesla (TSLA.O) experienced a 6.9% surge in its stock shares following the company’s announcement of record-breaking vehicle deliveries in the second quarter.
The S&P 500 rose 0.01% to 3,899.38, while the Nasdaq Composite gained 0.10% to 11,597.42. The Dow Jones Industrial Average fell 0.03% to 31,338.15.
Tesla was the biggest gainer on the S&P 500, rising 5.5% after the electric car maker announced that it would split its stock 3-for-1. The stock split is expected to take effect on August 28.
Other notable movers included:
- Apple rose 0.4% after the iPhone maker reported strong quarterly earnings.
- Microsoft gained 0.6% after the software giant also reported strong earnings.
- Amazon fell 0.7% after the e-commerce giant warned of slower sales growth in the coming quarters.
- Meta Platforms fell 1.4% after the social media giant reported mixed quarterly earnings.
The market was volatile in the early going as investors digested the latest economic data. The US Commerce Department reported that retail sales rose 0.3% in May, below expectations for a 0.4% increase.
However, the report also showed that core retail sales, which exclude volatile items like automobiles, rose 0.6%, beating expectations for a 0.5% increase.
The market was also looking ahead to the Federal Reserve’s monetary policy meeting next week. The Fed is widely expected to raise interest rates by 75 basis points in an effort to combat inflation.
Overall, the market ended the shortened session with little change. Investors were cautious ahead of the Fed’s meeting and the upcoming earnings season.
However, the strong performance of Tesla and other technology stocks helped to keep the market afloat.
Analyst’s Take
The market was subdued as investors digested economic data and looked ahead to the Fed’s meeting.
Retail sales were disappointing, but core retail sales were stronger, suggesting consumer spending remains healthy. As the Fed meeting approaches, investors are being cautious.
What’s Next
The market will be closely watching the Fed’s monetary policy meeting next week.
The Fed is widely expected to raise interest rates by 75 basis points in an effort to combat inflation.
Investors will also be looking at the upcoming earnings season for signs of how companies are faring in the current economic environment.
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