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- US tech stocks surged on Monday after Tesla received a bullish upgrade from Morgan Stanley.
- Tesla stock jumped as much as 10% after Morgan Stanley highlighted the company's Dojo supercomputer initiative.
- Also helping stocks on Monday was the biggest decline in the US dollar in two weeks.
Technology shares drove the stock market higher on Monday after Tesla received a bullish upgrade from Morgan Stanley.
Shares of Tesla jumped as much as 10% after Morgan Stanley said the company's Dojo supercomputer initiative could add $500 billion to its market value.
"The more we looked at Dojo, the more we realized the potential for underappreciated value in the stock," Morgan Stanley said. "We believe Dojo can represent the next step-change in market perception of Tesla."
Also helping stocks on Monday was the US dollar's biggest decline in two weeks. The dollar has had an outsized impact on stock prices over the past year. Stocks began to rally in late 2022 right after the US dollar started to break down, and a recent sell-off in stocks this past August was preceded by a sharp rise in the dollar.
Investors are awaiting CPI inflation data on Wednesday to better understand whether the Fed will hike interest rates at the next meeting of the Federal Open Market Committee later this month.
Here's where US indexes stood shortly at the 4:00 p.m. closing bell on Monday:
- S&P 500: 4,487.46, up 0.67%
- Dow Jones Industrial Average: 34,663.72, up 0.25% (+87.13 points)
- Nasdaq Composite: 13,917.89, up 1.14%
Here's what else is going on today:
- The Chinese yuan bounced from its 16-year low on Monday as China's central bank announced it would continue to support the embattled currency through its prolonged slump.
- US consumer debt fears are overblown as borrowing slows and inflation cools, according to Moody's Analytics' chief economist.
- A hacker gained access to the X account of ethereum co-founder Vitalik Buterin and posted a malicious link to 4.9 million followers on Saturday.
- The US is importing more goods from Mexico than from China for the first time since 2003.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 0.25% to $87.29 a barrel. Brent, the international benchmark, dropped 0.06% to $90.60 a barrel.
- Gold jumped 0.18% to $1,946.10 per ounce.
- The yield on the 10-year Treasury bond rose one basis points to 4.28%.
- Bitcoin fell 3.05% to $25,045.