Market Optimism Boosts US Equities
As the US markets reopened after the long weekend, investors breathed a sigh of relief as concerns about President Trump’s threatened tariffs began to dissipate. The Dow Jones Industrial Average, S&P 500, and Nasdaq all saw gains, with Moderna shares leading the charge.
Moderna Soars on $590 Million Vaccine Award
The biotech firm’s stock surged after it announced a $590 million award from the US government to accelerate the development of a vaccine against bird flu. This significant investment is expected to fast-track the creation of a much-needed vaccine, boosting investor confidence in the company.
Earnings Season Brings Mixed Results
3M shares rose after the company reported better-than-expected results, driven by increased demand for its diverse range of products, including Post-it notes and Scotch tape. Ulta Beauty also saw its stock climb after Morgan Stanley upgraded the stock and raised its price target, citing the beauty products maker’s continued growth and market share gains.
Decliners: Walgreens and Apple
Walgreens Boots Alliance was the worst-performing stock in the S&P 500 after the Justice Department sued the pharmacy chain, accusing it of filling millions of unlawful prescriptions for opioids and other addictive drugs. Apple shares fell after Jefferies downgraded the stock, citing concerns about the company’s artificial intelligence outlook and revenue projections for the fiscal first quarter.
Tesla and EV Makers Take a Hit
Tesla and its rival electric vehicle makers saw their shares decline after President Trump signed an executive order reversing a government mandate that half of all vehicles made in the country had to be electric by 2030. The president also suggested eliminating tax incentives for EV buyers, casting a shadow over the industry’s future.
Commodities and Currencies
Oil futures slid, while gold prices gained. The yield on the 10-year Treasury note dropped, and the US dollar remained relatively stable against the euro, pound, and yen. Most major cryptocurrencies traded higher, bucking the trend of a volatile market.
As the market continues to navigate the complexities of global trade and economic policy, investors remain cautious yet optimistic about the future.
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