Dow Jones, S&P500 Make New Records, Tesla Hits $1 Trillion

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Key Takeaways

S&P500, Dow Jones rise to new all-time highs amid strong third-quarter earnings season
EV maker Tesla tops $1 trillion in market value; “Wild $T1mes!” Tesla CEO Elon Musk tweets

What’s on Focus in the Markets?

US stocks continued their upside swing on Monday with Dow Jones and the S&P500 closing at new all-time highs. The spectacular run toward never-before-seen levels comes despite elevated challenges such as inflation, supply-chain shortages, and monetary stimulus withdrawal.

In more detail, the S&P500 added about 0.5% to close at a fresh peak of 4,566.48. In addition, the Dow Jones Industrial Average gained 0.2% to close at a new high of 35,741.15. The persistent move to higher grounds arrives as an extension to previous record-setting sessions. Even last week, both the Dow Jones and the S&P500 hit new highs.

Still, the earnings season is shifting gears. Big Tech companies are slated to report financial results for the third quarter this week. Moreover, Facebook already posted its quarterly results. According to the figures, the social media giant reported revenue of $29 billion for the quarter ended September.

The number was slightly below the analyst estimate of $29.57bn. Shares of Facebook were higher by over 1% in after-hours trading.

Tesla Breaks $1 Trillion in Valuation, Shares Jump 13%

Monday’s market session, however, had an even more remarkable achievement. Tesla, the electric vehicle maker, skyrocketed to a valuation of over $1 trillion.

For the first time in its history, the car company led by Elon Musk surpassed $1,000 a share. Not only that, but Tesla stock also closed at $1,024, up nearly 13% on the day.

The catalyst for the huge jump was a deal between Tesla and car rental company Hertz Global Holdings. According to the deal, Hertz has ordered 100,000 Tesla to be delivered by the end of 2022. The major purchase, analysts say, could help the electric carmaker reach more mainstream consumers.

“Wild $T1mes!” Tesla CEO Elon Musk tweeted Monday afternoon. “Strange that [Hertz order] moved valuation, as Tesla is very much a production ramp problem, not a demand problem.” That said, Tesla is now one of only five companies in the US worth over $1 trillion. The rest of them include Google’s Alphabet, Amazon, Apple, and Microsoft.

What’s the Latest News on Bitcoin?

In the meantime, bitcoin has returned to its march higher on Monday and early Tuesday. After two weak sessions over the weekend, the price of the original cryptocurrency has regained $62,000 to $63,000. On Monday, bitcoin added about 3% to its price, closing the day at $62,500.

Presently, the price of bitcoin gravitates near the flatline, virtually unchanged. With that in mind, cryptocurrency trading has been seeing increased appetite this month.

What’s Next for Traders and Investors?

On Tuesday, market participants will be closely monitoring third-quarter reports from tech behemoths Microsoft and Google parent Alphabet. Additionally, Visa is scheduled to release earnings figures today. That said, shares of the companies slated to report could present trading opportunities today due to higher volatility.