The S&P 500 ended its longest losing streak since April with a 1.3% gain, while the Nasdaq 100 and Russell 2000 rose even more, up 1.7%. The Magnificent 7 cohort advanced 2.4%, led by Tesla’s 8.30% increase after yesterday’s big losses.
Many automakers moved higher after reporting strong EV sales, including General Motors, Ford, and Rivian. Their Q4 sales figures showed surges in electric vehicle (EV) sales, with Ford’s full-year EV sales up 35%. GM’s were up over 50%.
However, the rally may not be enough to help Ford make up lost ground caused by costly quality issues that have weighed on margins. Tesla saw its sales decline slightly year-over-year.
In contrast, stocks like Uber have been strong out of the gate in 2025, with Goldman Sachs adding it to its “conviction list” of stocks to own.
A speculative frenzy around GameStop has fizzled out, with many lottery-ticket bets turned into ashes. The options contracts traded at nearly $1 just two weeks ago but are now trading at $0.15, a decline of 80%.
The US dollar fell against every G10 currency except the Canadian dollar on the day, and US Steel plummeted after President Biden blocked Japan’s Nippon Steel from acquiring the company.
Source: https://sherwood.news/markets/wall-street-says-tesla-really-isnt-about-cars-anyway