U.S. stocks mostly rose on Wednesday, bolstered by positive results from Tesla, one of the market’s largest technology companies to report its first-quarter performance early.
Wall Street buoyed by tech companies’ rally ahead of results from big names
Tesla (TSLA) shares rose 12%, rebounding from a 15-year low hit earlier in the week, after the electric vehicle maker announced plans to expedite the launch of new EV models, which will include cheaper options available in the latter half of 2025.
An affordable electric car model could mark the next phase of the company’s growth, potentially boosting sales of its profitable self-driving software.
The announcement largely overshadowed the electric vehicle maker’s worse-than-expected first-quarter results and concerns about its ambitious plans for robotaxis and automated driving.
The tech industry will remain in the spotlight as Meta Platforms (META), owner of Facebook, is set to reveal its results after Wednesday’s close, followed by other major firms like Microsoft (MSFT) and Alphabet (GOOGL) on Thursday.
Markets will be watching to see if the big tech companies can demonstrate their strong rise in valuations during the first quarter. Also, the upbeat sentiment ahead of positive results is likely to favor the technology sector in general.
The pace of the Q1 earnings season picks up
In addition to the tech giants, several companies released their quarterly results on Wednesday.
Boeing (BA) shares rose 4% after the aircraft maker’s first-quarter revenue surpassed forecasts, with CEO Dave Calhoun stating that the company is slowing manufacturing to enhance product quality.
Elsewhere, Humana shares rose 1.8% after the health insurance company beat first-quarter earnings forecasts, Boston Scientific gained more than 6% since the medical device maker raised its annual profit forecast, and Hasbro (HAS) climbed 10% as the toymaker announced a lower-than-estimated first-quarter sales decline and managed to beat earnings estimates by a wide margin.
Texas Instruments (TXN) advanced more than 6% due to encouraging results, and Visa (V) gained nearly 3% after its first-quarter earnings met expectations.
Conversely, Uber (UBER) and LYFT (LYFT) fell after Tesla said it also plans to venture into trucking, while Enphase Energy (ENPH) sank 3% on weaker-than-announced forecasts.
Crude oil prices drop despite falling US stockpiles
Oil prices fell on Wednesday despite a surprise drop in U.S. inventories, as traders also weighed heightened tensions in the Middle East.
The Energy Information Administration will confirm crude stockpile data on Wednesday.
Despite the decline in inventories, traders’ focus remains on the Middle East; however, the impact on oil supply is currently minimal, even as tensions escalate.
