Wall St Is on a Tear with AMD, TGT, Gold Rise, and Tesla Drops
There is nothing particularly new on markets so far this week. Wall Street has been on a tear for eight weeks in a row, since the beginning of 2024, so that the S&P 500 broad indicator is consolidating little lower after making another record high above 5,100. My personal stakes continue to increase in value, geared by the endless AI agenda. Even a possible effect of temporary pause of growth in the vicinity of new highs could be considered as something very natural, if it turns out that way. The culmination of Q4 earnings season has passed and the probably unsurprising Fed decision is only in mid-March.
Among specific market movers after the opening bell this Tuesday, only Tesla (TSLA) dropped by nearly 3% following the announcement from the electric vehicle world leader that its shipments of China-made cars slipped to a 14-month low. Tesla's Gigafactory near Berlin halts work, and it was left without power after a suspected arson attack, which led to an electricity pylon ablaze. Meanwhile, local media published a letter from a far-left activist organisation that pretended to claim responsibility for this strange action. "These are either the dumbest eco-terrorists on Earth or they're puppets of those who don't have good environmental goals," Tesla mastermind Elon Musk said on X, adding that stopping production of electric vehicles, rather than fossil fuel vehicles, is "extreme dumm". Anyway, I have repeatedly warned that I prefer staying away from Tesla investment for the nearest months, due to rather suppressed demand for its vehicles now. Therefore, I am undisturbed by another dive in Tesla stock price.
My favourite AMD is trading well above $200 per share, which I had in mind a long time ago, and this may be not the end of this bullish game with stakes in the world's second largest producer of AI chips.
Target Corporation (TGT) reported income that topped consensus poll estimates. This shows another healthy move in the retail segment, so that Target is now trading more than 12% higher compared to the previous day close. I did not invest in Target, as there was a lot of volatility in Target prices recently, yet this may help my stakes in Walmart (WMT) and other consumer staples to jump. This story also inspires more confidence in the broader market.
Gold are rising, mostly in sync with stock market growth, but this process is not too fast, which is also a sign that the situation is more or less normal. Slow and steady return to early December levels above the $2,150/oz landmark in the nearest months, including possible spikes higher, looks as my baseline scenario amid the crawling uptrend in the U.S. and European stocks, while further direction for EUR/USD and other reserve currencies is not yet clear.
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