4:12pm: Tesla rebounds
The three major US stock indexes finished Monday’s trading session modestly higher as investors continued to weigh up mixed earnings reports ahead of Fed chair Powell's closely watched remarks on Wednesday.
The Nasdaq added 0.4% at 15,983 points, the Dow was up 0.4% at 38,386 points and the S&P 500 gained 0.3% at 5,116 points.
EV maker Tesla surged 15.3% to $194 on reports it has reached a deal with China's Baidu for its self-driving software.
“The combination of a compelling story in its latest results, and today’s China news, has once again put [Tesla CEO] Elon Musk on top,” Chris Beauchamp, chief market analyst at IG, commented.
“The deal with Baidu promises to deliver a new revenue stream, something particularly important as the EV titan looks to build more affordable models with slimmer margins than previous products.”
12.19am: Tech stocks move higher
US tech stocks moved higher this morning, with the Nasdaq 100 index adding 0.3% to 17,773.
Tesla Inc (NASDAQ:TSLA) led the charge with a bumper 17% gain after Elon Musk’s surprise visit to China aimed at pushing self-driving technology in the country.
Sirius XM, ON Semiconductor and Biogen were also top morning risers.
The Dow Jones Industrial Average (DJIA) was up 0.2% while the broader S&P 500 index was 0.3% higher at 5,114.
9.55am: Wall Street starts higher, before wobble
The Dow Jones was carrying the Wall Street banner in the first minutes of trading in the week, as early gains on the S&P 500 and Nasdaq quickly petered out.
After just over 20 minutes, Old Lady Dow was up 0.32% at 38,360, while the Nasdaq was flat. The S&P stood in between with a 0.14% gain.
Of the Dow components, Apple, telecoms giant Verizon, biotech Amgen and retailer Walgreens Boots Alliance were the top risers.
On the Nasdaq, six of the top 10 were in the red: Microsoft, Nvidia, Alphabet, Meta, Broadcom and ASML.
Tesla was a notable riser, jumping over 11% in early trades as it moved closer to launching self-driving cars in China (see earlier).
"The US dollar is consolidating a bit weaker across the board this morning against the G10, continuing last week’s trend ahead of the Federal Reserve policy decision on Wednesday,” said analysts at Monex USA.
“A highly sensitive market to any development amidst a slew of global data points pushed volatility high through all of last week," they added, with the high-volatility currency trend expected to continue again this week, with the midweek Fed report and US jobs report out on Friday.
6.58am: Tech stocks expected to drive positive start
US stocks are seen enjoying a fairly decent start to the week after a strong finish to what was a rollercoaster of a week.
Ahead of a week that contains two more earnings from members of the Magnificent 7 and a Federal Reserve meeting, tech stocks are set to resume their position as the bandleader for the morning march higher.
According to futures markets, the tech-powered Nasdaq 100 is pencilled in for a 0.29% gain, followed by S&P 500 up 0.15% and Dow Jones up 0.10%.
Tesla Inc (NASDAQ:TSLA) is up 9% in pre-market trading after the electric vehicle company got its long-awaited China approval for Full Self Driving, which boss Elon Musk sealed with a surprise visit to Beijing at the weekend.
Tesla will partner with Chinese tech stalwart Baidu for mapping and navigation functions, which analysts said was the key to getting the green light from Beijing.
Apple Inc (NASDAQ:AAPL, ETR:APC) and Amazon.com Inc (NASDAQ:AMZN) are both up ahead of their earnings later in the week, while Nvidia, due in a few weeks, is flat.
Tech has been a major outperformed in this earnings season, but is "no longer a blanket ‘buy AI theme’. It’s now about who can generate profit quickest from AI," said analyst Kathleen Brooks at XTB.
The Magnificent 7 stocks have diverged recently, with Nvidia surging ahead, Meta nose diving, but Apple the biggest underperformer on a relative basis this year, even below Tesla after the EV maker’s strong run last week.
Some non-tech earnings releases this week could determine if the S&P 500, which is less than 3% away from its record high, can continue to extend gains, Brooks said.
"Coca-Cola, McDonalds, Yum Brands and PayPal could be useful gauges of US consumer sentiment, as inflation rears its head once more. However, the focus will be on healthcare giant Eli Lily on Tuesday, as we wait for an update on sales of its weight loss drug."