S&P 500 ends sharply higher, Nvidia and Tesla rally

S&P 500 ends sharply higher, Nvidia and Tesla rally

  • 25.03.2025 00:49
  • thestar.com.my
  • Keywords: S&P 500 rally, Nvidia rally, Tesla rally

The S&P 500 surged Monday, boosted by Nvidia and Tesla as optimism grew over possible eased U.S. tariffs. The index rose 1.76% to close at its highest in two weeks.

Tesla ServicesNvidia ServicesNVDAsentiment_satisfiedTSLAsentiment_satisfied
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Estimated market influence

S&P 500

Positivesentiment_satisfied
Analyst rating: N/A

The S&P 500 ended higher, indicating a positive market movement.

Nvidia

Nvidia

Positivesentiment_satisfied
Analyst rating: Strong buy

Nvidia's stock price increased by over 3%.

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Tesla's stock surged almost 12%, its biggest gain since early November.

Context

Analysis of Market Developments and Business Insights

Market Indices Performance

  • S&P 500: Ended at 5,767.57 points, up 1.76% (highest in over two weeks).
  • Nasdaq: Climbed to 18,188.59 points, gaining 2.27%.
  • Dow Jones Industrial Average: Rose to 42,583.32 points, up 1.42%.

Key Stock Movements

  • Nvidia: Rally of over 3%.
  • Advanced Micro Devices (AMD): Jumped 7%.
  • Tesla: Surged nearly 12%, its biggest one-day gain since early November.
  • Dun & Bradstreet: Climbed 3% after a $7.7 billion acquisition by Clearlake Capital.
  • Lockheed Martin: Dropped over 1% following a downgrade by BofA Global Research.

Sector Performance

  • Consumer Discretionary: Led gains with a 4.07% rise, driven by Tesla.
  • Communication Services: Gained 2.1%, contributing to market momentum.

Economic and Market Indicators

  • Volume on U.S. Exchanges: Light trading at 13.6 billion shares, down from the average of 16.5 billion over previous 20 sessions.
  • Russell 2000 Index: Rose 2.55% to a two-week high.
  • CBOE Volatility Index (VIX): Dropped 1.8 points to a one-month low.

Investor Sentiment and Market Trends

  • Investors showed relief over potential easing of tariffs, but concerns remain about long-term impacts on inflation, growth, and corporate profits.
  • Earnings growth projections for S&P 500 companies in 2025: Expected at 10.5%, down from 14% earlier this year due to tariff-related uncertainties.

Mergers & Acquisitions

  • Dun & Bradstreet: Acquired by Clearlake Capital for $7.7 billion.

Crypto and Alternative Markets

  • Bitcoin prices rose 4%, with crypto stocks surging: MicroStrategy up 10%, Coinbase up 7%.

New Highs and Lows

  • S&P 500: 5 new highs, 1 new low.
  • Nasdaq: 46 new highs, 97 new lows.

Competitive Dynamics and Strategic Considerations

  • Tariff-related uncertainty has led several companies to lower forecasts for upcoming quarters.
  • The rally in technology stocks (e.g., Nvidia, Tesla) highlights investor optimism about reduced tariff risks.
  • M&A activity (Dun & Bradstreet acquisition) underscores strategic shifts amid market volatility.

Long-Term Effects and Regulatory Impacts

  • Ongoing concerns over inflation, driven by tariffs and import policies, may weigh on market sentiment in the near term.
  • The Federal Reserve's focus on inflation (via PCE index) remains a critical factor for future monetary policy decisions.