The S&P 500 closed at a record high Tuesday as investors largely brushed off firmer-than-anticipated inflation data and a potential blow to the nation’s inoculation efforts, focusing instead on the Wednesday start of first-quarter earnings season, which will shed light on how corporations have been faring as the economy reopens.
Heading up gains in the S&P, shares of booming electric-vehicle maker Tesla skyrocketed 8% after Canaccord Genuity analyst Jed Dorsheimer upgraded his price target for the stock to $1,071, giving shares more than 40% upside thanks to Tesla‘s energy storage business, which Dorsheimer says the market hasn’t been factoring into its valuation.
Shares of Johnson & Johnson, on the other hand, slumped 1% after officials at the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) called for a pause on the administration of its Covid-19 vaccine over rare blood clot cases; shares of Moderna and Pfizer climbed 7% and 0.5%, respectively, after the announcement.
As inflation concerns mount on Wall Street, consumer prices rose a higher-than-expected 2.6% in March, with gasoline prices spiking 9.1% and accounting for almost half of the index’s price increase, according to Tuesday data from the U.S. Bureau of Labor Statistics.
Meanwhile, meme stocks GameStop and AMC, which plunged 11% and 8.5%, respectively, on Monday, struggled to add back losses Tuesday, with Morgan Stanley warning that the market’s speculative pockets could see increased volatility in the months to come.
“The Johnson & Johnson vaccine news, though an obvious negative, is unlikely to permanently disrupt the present market narrative as the scarcity of blood clot incidents coupled with alternative suppliers will keep the country on track to achieve herd immunity,” Vital Knowledge Media Founder Adam Crisafulli wrote in a Tuesday morning note. He says investors are also likely to look through the price data given that experts have been expecting higher inflation due to what’s known as base effects. In other words, monthly price data will now be based on the unusually low prices at the onset of the pandemic, so inflation will grow more quickly than usual as prices revert back to pre-pandemic levels.
Bitcoin nabbed a new price high of about $63,300 at about 8:15 a.m. Eastern Tuesday, pushing the market capitalization of the world’s largest digital currency to about $1.2 trillion, surpassing the value of Brazil’s entire stock market. The new high comes one day before Coinbase, the nation’s largest cryptocurrency exchange, is set to debut on the Nasdaq exchange.
What To Watch For
US Calls For Halting Johnson & Johnson Covid-19 Vaccine After Rare Blood Clot Cases (Fintech Zoom)
Here’s Why The White House Isn’t Worried About Inflation (Fintech Zoom)
AMC Stock Plummets After Chinese Billionaire’s Firm Sells $220 Million Stake (Fintech Zoom)
Here’s The ‘Early Warning Sign’ Morgan Stanley Worries About As Stocks Hit Record Highs (Fintech Zoom)