For the second straight day, stock markets showed signs of forming a bottoming process. The Dow Jones, Nasdaq (QQQ), and S&P 500 (SPY) rose steadily on Monday. Mild profit-taking in the last hour of trade did not hurt the indices. Russell 2000 (IWM) performed the best, rising 1.26%.
Stock markets benefited from a lack of Trump tariff news in the headlines. Speculators bet on quantum computing stocks, ahead of Nvidia’s GTC event for developers. The GDC event, or Game Developers Conference also happens at the same time. Shares of Electronic Arts (EA) and Take-Two Interactive (TTWO) traded higher.
In the electric vehicle market, Chinese firms like Nio (NIO) and XPeng (XPEV) slipped, while Li Auto (LI) slipped. In the U.S., investors bought Rivian (RIVN) and VinFast Auto (VFS). They shunned Tesla (TSLA) stock, whose rally to $250 stalled. TSLA stock closed at $238.01. At a price-to-earnings ratio of 116.77 times, CEO Elon Musk’s free trial offer of self-driving in China did not boost confidence.
Tesla’s FSD – full self-driving technology, depends on camera sensors. Conversely, competitors use the more advanced LiDAR and cameras. This increases the appeal for non-Tesla FSD vehicles. Despite Tesla falling, short-sellers are not betting against the firm. The short float is 2.40%.
