Tesla and General Motors Form Alliance, Stocks Rise Sharply

U.S. electric vehicle leader Tesla and General Motors have formed an alliance. The good news pushed the stock prices of the two companies to rise sharply at the opening. Friday (9th) was higher.Separately, as tech stocks rallied on Friday, drivingS&P 500 IndexFurther into the bull market.

before the deadline,Dow Jones Industrial Averagerose more than 50 points or nearly 0.2%,Nasdaq Composite Indexrose more than 120 points or nearly 1%,S&P 500 Indexup nearly 0.5%,Philadelphia SemiconductorThe index rose nearly 1.8 percent.

Investors may be conservative and reluctant to build large positions ahead of the latest interest rate decisions from the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) next week. The central banks of Australia and Canada unexpectedly raised interest rates, fueling speculation that policy makers may have to keep rates high for longer.

Meanwhile, U.S. data showed that the tight labor market is easing, supporting consensus that the Fed may pause interest rate hikes. Currently, traders are pricing in around a 30 percent chance that the Fed will raise interest rates next week and a near 90 percent chance of a rate hike in July.

Hit the highest closing point of the yearS&P 500 Indexwhich has risen more than 20% from the low point in October last year, which means that the index’s bear market is officially over.

It is worth noting that,S&P 500 IndexMost of this year’s gains came from Amazon alone (AMZN-US),apple (AAPL-US), Microsoft (MSFT-US), Tesla, etc. represent stocks with high market capitalization and large weight. Strategists at Wells Fargo said the 20% cumulative technical bull market means that sometimes wrong signals are sent, and this technical bull market is not necessarily sustainable.

In terms of individual stocks, US electric vehicle leader Tesla (TSLA-US) shares rose 6% pre-market, and Patient Wang rose for the 11th consecutive session, as General Motors (GM-US) announced that it will join Tesla’s electric vehicle charging network. Tesla’s U.S. stock price opened up 5.33% on Friday, and General Motors rose 4.07%.

As of 21:00 on Friday (9th) Taipei time:

Focus stocks:

Meta Platforms(META-US) fell 0.22% in early trade to $264 per share

Zuckerberg, CEO of Facebook parent company Meta Platforms, announced to employees yesterday a plan to add generative AI text, image and video generators to its flagship products such as Facebook and Instagram, but Zuckerberg Bo describes it as an extension of Metaverse’s work rather than a replacement for Meta’s focus in the field.

DocuSign(DOCU-US) rose 2.39 percent to $59.88 a share in early trade

Electronic signature technology company DocuSign first-quarter revenue of 661 million US dollars, more than expected 642 million US dollars; adjusted profit of 0.72 US dollars per share, far exceeding the expected 0.56 US dollars. The company forecast second-quarter revenue of $675-679 million, beating expectations by $668 million. As of press time, the stock rose more than 6% to $62 per share before the market.

Carvana (CVNA-US) rose 6.62 percent to $25.84 a share in early trade

Carvana, the largest online used car dealer in the United States, rose another 1% before the market. The stock soared 56% yesterday to close at $24.23 per share, up 411% so far this year. That left investors betting on the stock down more than $1 billion in mark-to-market losses this year, including about $400 million overnight Thursday, according to S3 Partners.

Today’s key economic data:

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Wall Street Analysis:

ING’s rate strategist team, led by Benjamin Schroeder, wrote in a report that recent data point to heightened macroeconomic uncertainty and inflation remains at disturbing peaks. The team believes that the Fed’s interest rate has peaked, but it should be noted that if the consumer price index (CPI) climbs, the Fed may still raise interest rates next week. In any case, the Fed is open to further interest rate hikes.

Technology funds continued to see outflows of $1.2 billion in the week ended June 7, the first time in eight weeks, Bank of America said, citing data from EPFR Global. The bank’s analyst team believes that rising interest rates and liquidity drying up will pose negative risks to the growth of artificial intelligence (AI) and US technology stocks for the third time.