The car manufacturers Tesla and Lucid can look forward to substantial price gains. The mood on Wall Street is brightening overall, as the view of the weakening economy raises hopes that the US Federal Reserve will ease its interest rate policy.
The US stock exchanges were supported by easing inflation concerns and investors' joy at the ringing coffers of the major credit card providers. On the other hand, a fall in the price of the chip manufacturer Intel depressed the mood after a disappointing outlook, while the electric car manufacturer Lucid caused a sensation with a price explosion. The Dow Jones Index and the broader S
Weakening inflation is currently providing a ray of hope on the stock exchanges, fueling hopes of an end to the aggressive rate hikes by the US Federal Reserve. The personal consumption expenditure (PCE) index, the Fed's preferred measure of inflation, showed a 0.1 percent rise last month after a similar rise in November. Meanwhile, US consumer spending fell for the second straight month. "The Fed must act cautiously given the deteriorating economic outlook," said Christopher Rupkey, economist at trading house FWDBONDS. With a view to the Fed meeting on Wednesday, analysts are currently expecting a rate hike of 25 basis points.
Tesla was able to continue its old glory days as an investor favorite. After the positively received figures from the electric car manufacturer, private investors jumped on the moving train and, according to Vanda Research, set a new daily record for purchases of the share. Tesla shares jumped 10.99 percent to $178.87, the highest in more than a month and a half. On a weekly basis, Tesla was heading for an increase of around 33 percent.
There was also a price explosion at rival Lucid, whose shares soared by more than 44 percent to $12.96. Market participants attributed the jump to speculation that Saudi Arabia could buy the remaining shares in Lucid. These can be traced back to a report on a website that was described as a market rumour. The Saudi state investment fund PIF already owns more than 65 percent of Lucid. The parties involved declined to comment. US credit card issuers Visa and American Express (Amex) shone with better-than-expected earnings growth and an upbeat outlook. Visa shares gained three percent, Amex gained more than twelve percent.
Intel shares plunged 6.41 percent after the company posted its worst revenue slump in at least two decades and warned of further falls due to weak PC demand. A record profit wasn't enough for investors at Chevron. Oil company shares fell 4.27 percent to $179.78. Although profit more than doubled to $36.5 billion in 2022, it fell short of stock marketers' expectations due to asset write-downs and the decline in oil and gas prices. Year-end, all four reporting segments showed earnings declined from record levels set in the second and third quarters of 2022, said Third Bridge analyst Peter McNally.
Shares in US tire manufacturer Goodyear also fell 3.65 percent. The group is cutting five percent of its jobs worldwide to counteract the high cost pressure. However, this also incurs financial burdens of around $55 million. In the fourth quarter, business fell short of expectations, said boss Richard Kramer.
