On July 3, the U.S. stock markets closed early in celebration of the Fourth of July holiday, with all major indices experiencing positive movement. This positive start to the second half of 2023 builds on a strong first half for the markets. The Dow Jones Industrial Average closed at 34,418.47, up 10.87 points or 0.032%. The S&P 500 rose 5.21 points, or 0.12%, to close at 4,455.59, and the Nasdaq Composite jumped 28.85 points, or 0.21%, to 13,816.77.
According to CNBC, all three stock indices closed the first half of the year with gains, marking the largest first-half gain for the Nasdaq Composite since 1983, with a 31.7% increase. The S&P 500 also saw its biggest climb since 2019, with a 15.9% gain through June.
Tesla, which experienced some market turbulence earlier in the year, has made a notable recovery. Despite announcing a 20% drop in earnings in April and reducing prices on its Model Y and Model 3 cars, Tesla surpassed its delivery projections by delivering 466,000 vehicles and producing 479,700 vehicles in the second quarter. As a result, Tesla’s stock rose 6.9% following the release of its second-quarter results.
Looking ahead, Tesla will announce its financial results for the second quarter after the close of markets on Wednesday, July 19. Sam Stovall, chief investment strategist at CFRA Research, suggests that investors should shift their mindset from worry to fear of missing out (FOMO) and consider the potential for a positive second half of the year based on the strong start of the first half.
In addition to the positive market performance, the Federal Reserve recently decided to pause its benchmark interest rate hikes due to low unemployment rates and “robust” job gains. The U.S. Bureau of Labor Statistics reported significant employment increases in Texas, Florida, and Nevada.
