Stock market today: Nasdaq pops as investors shrug off Fed, Tesla rallies ahead of Elon Musk pay decision
How did Elon Musk's comments impact Tesla's stock price following the shareholders' vote?
Elon Musk's comments positively impacted Tesla's stock price following the shareholders' vote. After Musk said that the compensation and the EV maker's move to Texas had been passed "by wide margins," Tesla stock jumped almost 5%. This indicates that investors were reassured by the outcome of the vote and Musk's continued involvement with the company.
Despite the Federal Reserve's updated projections, what are traders currently predicting regarding future rate cuts?
Despite the Federal Reserve's updated projections, traders are currently predicting that the central bank will begin cutting the federal funds rate at its June meeting. According to the CME FedWatch tool, there is a 74% chance of the Fed starting to cut interest rates in June. This comes after the Fed held its key interest rate at a 23-year high and released updated economic projections, including a dot plot showing that the median Fed member expectation for the federal funds rate implies three 25 basis point (0.25%) interest rate cuts by the end of 2024.
How did the Dow Jones Industrial Average perform compared to the S&P 500 and Nasdaq on the same day?
On the day in question, the Dow Jones Industrial Average (DJIA) underperformed compared to the S&P 500 and Nasdaq Composite3. The S&P 500 edged up by 0.3% after reaching a fresh all-time high, while the Nasdaq Composite popped 0.6% on the back of strong performance in the technology sector. In contrast, the DJIA headed lower, down 0.3%. This mixed performance came as investors weighed cooling inflation and the Federal Reserve's pullback on interest rate cuts.