US Stock Market Displays Mixed Results as Electric Vehicle Stocks Rally

In anticipation of the upcoming July 4th holiday, the stock market kicked off the trading session with a diverse range of performances. Notably, electric vehicle (EV) stocks stole the limelight after positive vehicle delivery news emerged over the weekend.

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As the market opened, the S&P 500 index (^GSPC) experienced a marginal 0.1% decline, while the Dow Jones Industrial Average (^DJI) retreated by approximately 0.3%. In contrast, the Nasdaq Composite index (^IXIC) showcased a 0.2% upward trajectory.

Tesla's (TSLA) stock soared by over 6.5% in early trading, buoyed by the electric vehicle manufacturer's exceptional second-quarter production and delivery figures, which marked an all-time high.

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However, Apple (AAPL) struggled to sustain its Friday gains, sliding below the flatline with a 0.2% drop. Reports surfaced that the tech giant had revised its production forecasts for the Vision Pro headset, prompting some investor concerns.

Today, trading will conclude early at 1 p.m. ET, and the market will remain closed tomorrow in observance of the July 4th holiday.

Tech Sector Leads the Charge as EV Stocks Surge

With the electrifying performance of EV stocks, the Nasdaq index surged ahead during the market opening, outpacing the S&P 500 and Dow Jones.

Shortly after trading commenced, the Nasdaq witnessed a 0.1% increase, while the Dow Jones struggled with a 0.3% decline, and the S&P 500 dipped approximately 0.2%.

Investors will have the opportunity to engage in trading for the next three and a half hours.

Recession Concerns Resurface

Early Monday, market observers noted that the spread between the yield on 2-year Treasury notes and 10-year Treasury notes reached its most inverted state in 42 years. This unusual pattern suggests that the 2-year yield surpasses the 10-year yield, raising concerns about the economic outlook.

Although the yield curve has traditionally served as a reliable indicator of recessions, the current circumstances have led to differing interpretations. Some analysts propose that the indicator may not necessarily foreshadow an imminent recession but rather indicate a potential economic downturn three years down the line.

EV Stocks Energize July Trading

Tesla's impressive production and delivery numbers, revealed over the weekend, propelled the company's stock by over 6%. Moreover, several Chinese EV manufacturers, including XPeng (XPEV), Li Auto (LI), and Nio (NIO), experienced substantial stock rallies following the publication of their own performance figures.

XPeng's stock surged by more than 7%, Li Auto recorded an increase of up to 5.5%, and Nio's shares climbed over 4.5% before the market opened on Monday.

Notably, XPeng garnered attention by pricing its new XUV below Tesla's Model Y. These consistent positive results in EV stocks indicate that strategic moves aimed at capturing market share, rather than short-term pricing power, are being rewarded.

Mixed Stock Futures Ahead of July 4th Holiday

As the stock market prepared for the upcoming closure on July 4th, stock futures depicted a mixed performance. S&P 500 futures remained mostly stagnant, while Dow Jones futures declined by approximately 30 points. Conversely, Nasdaq futures demonstrated a 0.20% increase, reflecting the optimistic sentiment surrounding the tech-heavy Composite index, which concluded the first half of 2023 with its strongest performance since 1983.

Also Read: Apple Achieves Historic $3 Trillion Market Cap Amidst Continued 2023 Tech Rally