Written by Yasin Ebrahim
Investing.com – The S&P 500 climbed on Wednesday, continuing its recovery from the recent sell-off led by Omicron as Tesla, fueled by growing consumer discretion and further strength in high-tech stock growth.
It rose 0.8%, added 0.6% or 204 points, climbed 0.9% and was up 0.7%.
Tesla (NASDAQ 🙂 rose more than 6% after CEO Elon Musk sold “enough shares” to achieve his goal of selling a 10% stake in the electric car company.
The shift further in Tesla comes just weeks before the electric vehicle maker announced a delivery update in the fourth quarter.
“Tesla usually reports within 2-3 days of the end of the quarter, so expect results at the beginning of the new year,” reads a note from RBC Capital Markets, predicting total deliveries of 285,000 units in the 4th quarter of 2021.
Consumer discretion has also been driven by an increase in stock reopening as tourism and hospitality market corners have grown.
carnival (NYSE :), Royal Caribbean Cruises (NYSE 🙂 increased by more than 3%, while Expedia (NASDAQ 🙂 increased by 2%.
The sense of stock reopening was also reinforced by the news that Pfizer’s Covid-19 pill had been given. Pfizer’s Paxlovid is the first home remedy approved for Covid-19.
“Pfizer is ready to begin delivery in the United States immediately to help get PAXLOVID into the hands of the right patients as soon as possible,” said Albert Bourla, President and CEO. Pfizer (NYSE :).
Great technology, with the exception of Meta, formerly known as Facebook (NASDAQ :), has also spurred the wider market to more.
Microsoft (NASDAQ :), Google-parent Alphabet (NASDAQ :), Apple (NASDAQ 🙂 and Amazon (NASDAQ 🙂 were bigger.
Energy contributed to the profit from the previous day and rose more than 1% as oil prices were driven by lower-than-expected declines in weekly U.S. crude oil inventories.
U.S. inventories fell 4.7 million barrels, above expectations for a 2.8 million barrel drop.
Devonian energy (NYSE :), APA (NASDAQ :), Marathon oil (NYSE 🙂 are the biggest winners in the energy sector.
In the industry, meanwhile, Caterpillar Inc. (NYSE 🙂 rose more than 1% after Bernstein upgraded the company to outperform performance, citing growth in 2022.
Coinbase (NASDAQ 🙂 rose 2% after Oppenheimer named the company the best choice for 2022 as accelerating the adoption of digital assets will further strengthen the prospects for cryptocurrency growth.
“For institutional investors interested in exhibiting digital assets, we trust COIN [Coinbase] is in a good position to benefit from it, ”Oppenheimer said.
On the economic front, the U.S. consumer remained resilient, dismissing concerns about inflation amid “strong revenue expectations,” Jefferies said.
It rose to 115.8 in December, well above the reading consensus of 111.0.
Events in Washington also supported market growth after President Joe Biden said he would extend the student loan repayment break until May 1.