Nasdaq takes off as investors ignore Fed, Tesla rises ahead of Elon Musk’s payout decision

He lives3 updates

• Thursday, June 13, 2024 at 5:00 PM GMT+2

  Tax cuts versus “direct investments”: Trump and Biden make dueling offers to business leaders

  Ben Warschkul from Yahoo Finance reports:

  The Trump campaign and the Biden administration are making outreach to the business world Thursday with competing events that crystallize their different promises to American businesses should they win the election.

  They both offer carrots with a different flavour.

  Donald Trump, who is scheduled to meet Thursday morning with a group of prominent CEOs in Washington, D.C., is focusing heavily on tax cuts as well as cutting government regulations.

  The promise from the Biden team is that the second term will focus, as Treasury Secretary Janet Yellen is scheduled to say in a speech Thursday to business leaders in New York, on “public interventions to create a pro-business environment and fuel private sector investment.” “

  It remains to be seen which approach will resonate with the business community at large and the public at large.

  But several CEOs have signaled a close focus on taxes next year before key provisions in Trump’s 2017 tax cuts expire at the end of 2025.

  Read more here.

• 

  Thursday, June 13, 2024 at 4:20 PM GMT+2

  Nvidia and Broadcom reach new highs

  Shares of Nvidia (NVDA) rose as much as 3% on Thursday to touch all-time highs during the day after peer chipmaker Broadcom (AVGO) reported upbeat quarterly results supported by demand for artificial intelligence.

  Broadcom also announced a 10-for-1 stock split, sending shares soaring to record levels on Thursday. Apple’s major supplier (AAPL) is on track for its biggest gain since 2020.

• 

  Thursday, June 13, 2024 at 3:32 PM GMT+2

  The S&P 500 and Nasdaq indices rise as Tesla shares rise 5%

  The Nasdaq and S&P 500 held near record levels on Thursday as investors digested the Federal Reserve’s penchant for cutting interest rates just once this year while technology stocks rose.

  The S&P 500 (^GSPC) rose 0.2% after the index crossed 5,400 points to close at a new all-time high. The Nasdaq Composite (^IXIC) rose 0.6% on the heels of setting its own record, with technology stocks leading the broader rally.

  The Dow Jones Industrial Average (^DJI) fell 0.3%

  Tesla ( TSLA ) shares opened 5% higher after Elon Musk indicated that two important shareholder votes, including one involving his $56 billion pay package, had passed by a “wide margin.”

  The Fed has hinted at just one rate cut later this year, falling short of market expectations of at least two cuts. The Federal Open Market Committee (FOMC) kept interest rates unchanged on Wednesday after its two-day meeting. This decision came in the wake of the release of the latest consumer price index, which indicated a slowdown in inflation for the month of May.