Tesla (TSLA) powered the Nasdaq higher on Thursday with a surprising surge in its stock price, helping the tech-heavy index lead a mixed day in the markets. The company’s solid quarterly earnings report and optimistic sales forecast ignited investor confidence, boosting hopes for a strong earnings season overall. However, the Dow Jones Industrial Average (^DJI) continued its decline, weighed down by IBM’s (IBM) third-quarter revenue miss.
The Nasdaq Composite (^IXIC) gained about 0.8%, driven by Tesla’s standout performance. Meanwhile, the S&P 500 (^GSPC) rose roughly 0.2%, rebounding after a brief dip into negative territory earlier in the session. The Dow shed nearly 150 points, or 0.3%, marking another tough day for the index as it extended losses from the prior session.
Tesla stole the spotlight by delivering its biggest quarterly profit in over a year. The stock soared more than 20%, marking its best trading day since May 9, 2013. Investors were particularly encouraged by CEO Elon Musk’s forecast that the company’s electric vehicle sales could grow between 20% and 30% in 2025. Despite Tesla’s success, the rally failed to significantly lift other megacap tech stocks.
Elsewhere, Boeing (BA) shares dropped by around 1% following news that striking workers had rejected a pay deal. This came on the heels of Boeing reporting a substantial $6 billion loss for the third quarter, adding to the recent streak of challenges facing stocks on the Dow.
In the broader market, the 10-year Treasury yield (^TNX) pulled back slightly after reaching 4.25% on Wednesday amid concerns that the Federal Reserve may delay interest rate cuts. The yield dipped to around 4.20%, providing some relief for investors.
Meanwhile, data released before the market opened showed that jobless claims unexpectedly fell to 227,000 for the previous week, down from a revised 242,000 the week before. This drop in filings, which had been volatile due to recent hurricanes, added a positive note to the otherwise mixed market session.
