Stock markets await Fed policy meeting outcome
Tesla (TSLA) gained 8.49% as a car hire company ordered over 100,000 vehicles
Gold and oil are both seeing positive moves on Tuesday
Monday saw stocks edge slightly higher to continue recent positivity amid strong earnings reports across the market. After a disappointing outlook from Apple Inc. and Amazon Inc. late last week, shares across the S&P 500, Dow Jones Industrials, and Nasdaq 100 closed largely in the green as indexes hit new all-time highs.
Apart from the encouraging Q3 financial reports, bullish comments from US Treasury Secretary Janet Yellen about the US economy and strong performance in the European market see investors eyeing further gains in November.
On the bearish side, unexpected outcomes from the Fed meeting on 3 November and a slowdown in Chinese markets could influence the short-term outlook.
Tesla gains 8% to top Nasdaq 100 gainers list
While the S&P 500, the Dow Jones, and Nasdaq all rose, the top performer on the latter was Tesla (TSLA). The electric-car maker’s stock edged 8.49% to close at a new high of 1,208.59, gaining $94.59 on the day.
It saw TSLA top Nasdaq 100’s list of biggest daily gains, with most of the upside for the stock coming from strong Q3 results as well as the prospects of a 100-car order Hertz Global Holdings.
Oil prices surge on OPEC outlook
Oil prices were on Tuesday trading higher as the market reacted positively to news that OPEC had underestimated October oil output from its members.
It also followed China’s move to increase rates on diesel, days after releasing reserves of gasoline and diesel.
According to OANDA analyst Edward Moya, demand and stability in supply could trigger further buying and push oil even higher. He told Reuters:
“Crude prices still seemed poised to head higher, with some traders waiting for confirmation after both the EIA crude oil inventory shows demand for most products is headed in the right direction, while U.S. production is stable and with OPEC+ sticking to their gradual 400,000 bpd increase plan.”
Gold holds above $1,793
Tuesday sees Gold trading unchanged across the markets as bulls hold strong. Spot gold at the time of writing changed hands around $1,793.60 an ounce but faces pressure ahead of the US Federal Reserve meeting scheduled for Wednesday.
According to asset manager Stephen Innes, the price of gold could see some declines if the Fed reveals a stimulus tapering plan going into the weekend.