Tesla Nears $500bn Market Cap As Markets Rally On Trump Power Transfer

European markets have maintained yesterday’s momentum with news of easing lockdowns in the UK and France adding to the optimism. The FTSE is up 0.5%, the Dax up 0.4%, and the Dow Jones leading way in the US futures market up 1%.

Markets around the world rose on Monday and overnight as further vaccine news, and a hint from outgoing President Trump about a smooth transition of power, all stoked the current rally.

Trump reportedly said he had recommended the General Services Administration, which helps transition to the new presidential regime, “do what needs to be done with regard to initial protocols”. The news helped calm fears about a disorderly handover of power to incoming President Joe Biden.

Elsewhere, AstraZeneca (AZN) and the University of Oxford announced on Monday that their coronavirus vaccine is up to 90% effective, adding a third vaccine to the ones already announced by Pfizer (PFE) and Moderna (MRNA).


The latest pair provided more data than Pfizer and Moderna, and revealed an average efficacy of 70%, depending on the dosages given and time between doses. Crucially, AstraZeneca’s vaccine can be stored at refrigerator temperature, rather than requiring the extreme cold storage that poses a logistical challenge for the Pfizer and Moderna vaccines.

US markets closed higher in reaction, with the S&P 500 up 0.5% yesterday, before shares in Asia followed suit, with the Japanese Nikkei up 2.5% and Hong Kong’s Hang Seng up 0.1%.

Among standout shares, Tesla’s (TSLA) share price passed the $500 milestone for the first time, pushing its market cap close to $500bn. The leap came after analysts at Wedbush raised their bull-case price target on the stock to $1,000. The firm highlighted that currently, 3% of all auto sales are electric, a number it expects to more than triple to 10% by 2025.


Energy sector stocks jump 7% to start week

On Monday, the Dow Jones Industrial Average led the way in the US with a 1.1% gain, versus +0.6% for the S&P 500 and +0.2% for the Nasdaq Composite. The top of the S&P 500 was dominated by energy names, with Occidental Petroleum, Apache, Marathon Oil, and more all delivering double-digit gains after oil continued to hold well above the $40 a barrel mark. Overall, the S&P’s energy sector delivered a 7.1% gain on Monday. In the Dow, Chevron led the way with a 6.1% gain, taking its rally over the past month close to 30% and paring its year-to-date loss back below the 25% mark. Tech firms suffered a tougher day, with Apple down 3% and Netflix off by 2.4%, weighing on the technology-heavy Nasdaq Composite index.

1 2 3
View single page >> |

Disclaimer: eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission. eToro AUS ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.