Market Struggling To Find A Footing In The Start Of June 👀 | Tesla Loyals Begin To Jump Ship? 🚢 | Meme Stock Mania Came & Went What’s Next? 🤔
Junes has been a drag of a month already and were only 2 days in, however the market pumped in the last 20 minutes to eke out some last minute gains. The market flip came from investors and the street shifted their rate-cut expectations after more weaker-than-expected economic data was released. How did the indexes perform though?
The S&P500 gained a modes 0.1% on the day
The Nasdaq Composite also put on 0.1%
The Dow Jones Industrial Average was the leader rising 0.4%
A new month is upon us and between confusing economic data and the divide of when a rate cut will come, the markets have been unable to find solid footing over the last 2 days. The weak manufacturing report has lead Wall Street & investors to scale back their expectations for economic growth. It’s shocking it has taken this long considering the Federal Reserve has told people on several occasions to not hold there breath for a rate-cut or pivot on stance until there is a long cooling period.
Today we had some government data come out for job openings and the report showed that openings fell in April to their lowest level since February 2021 which points to the labor market finally starting to rebalance. One thing to note on the positive side is 2/3 of Traders expect at least one cut by September up from a week ago according to the CME FedWatch tool.
Tesla’s stock has been on a wild ride, but some of its biggest fans are jumping ship. The electric carmaker’s shares have plummeted nearly 30% this year, wiping out a whopping $600 billion in market value. Even die-hard believers are getting cold feet, citing fierce competition, falling sales, and CEO Elon Musk’s distractions with politics and cultural issues.Some institutional shareholders, like Gabelli Funds, have sold their entire stake in Tesla, citing a disconnect between the company’s fundamentals and its stock price. Others, like Ross Gerber, have been selling steadily, complaining about Musk’s priorities and the company’s public relations department.
Despite this, Tesla remains the world’s most valuable automaker, with a market capitalization of over $560 billion. But its valuation is sky-high, trading at 64 times future earnings – far exceeding that of other automakers and even some tech giants.Bullish investors point to Tesla’s technology, fan base, and push into autonomous driving as reasons to hold on. But critics argue that self-driving vehicles are a risky bet, facing significant engineering and regulatory hurdles.
As the debate rages on, one thing is clear: Tesla’s days of dizzying growth may be behind it, and investors are rethinking their bets on the electric carmaker. Will Tesla’s stock continue to slide, or will it bounce back with its promised new models and autonomous driving tech? Only time will tell.
Meme Stock Mania Coming To A Halt? Let’s Explore 💰
GameStop’s wild ride continues! After surging 21% on Monday, the meme stock’s shares took a 5% tumble on Tuesday. The drama began when a mysterious social media post from “Deep F***ing Value” claimed to show a $175 million stake in GameStop shares and call options. The post sent the stock soaring 75% on Monday, but executives at Morgan Stanley’s E-Trade are now discussing a potential ban on the account believed to be tied to Keith Gill, aka “Roaring Kitty”.
Gill, the mastermind behind the 2021 meme stock craze, has been quiet on social media for three years, but his recent posts have sent GameStop’s stock into a frenzy. Analysts are warning investors to be cautious, suggesting that Gill’s moves may be more about lining his own pockets than benefiting others. “If you’re chasing the stock up here, you’re more likely than not the source of liquidity for whoever is controlling this account to sell into your enthusiasm,” said Steve Sosnick, Interactive Brokers chief strategist.
Despite the volatility, GameStop has capitalized on the meme frenzy, selling 45 million shares and raking in $930 million in proceeds. AMC Entertainment, another meme stock favorite, also raised $250 million through a share sale last month. As the drama unfolds, one thing is clear: the meme stock phenomenon is far from over, and investors are holding their breath to see what’s next.
