Tesla's Forecast Fuels Stock Market Rebound

The S&P 500 and Nasdaq saw gains as Tesla's promising sales forecast and strong quarterly results lifted market sentiment. This optimism spread to growth stocks like Nvidia and Meta. Conversely, Boeing and Honeywell faced declines due to contract rejections and weaker forecasts, impacting the Dow.

The S&P 500 and Nasdaq rebounded on Thursday, driven by Tesla's optimistic sales forecast that rejuvenated investor confidence following a market downturn the previous day. Tesla's shares surged nearly 16.7% as it delivered robust third-quarter profits and projected a 20% to 30% sales growth for the coming year, injecting over $100 billion into its market valuation.

This positive sentiment propelled the Consumer Discretionary sector to a leading position within the S&P 500's 11 sectors, showcasing a 2.4% rise. Other growth stocks, such as Nvidia and Meta, also reaped the benefits, posting slight gains. On the contrary, the Materials sector faced challenges, with Newmont dragging it down by 1% due to higher costs and lower output in Nevada that missed profit expectations.

Boeing's shares fell following the rejection of its contract offer by factory workers, extending a strike, while Honeywell's lower-than-expected sales forecast contributed to Dow losses. Despite these hurdles, Wall Street's attention remains on earnings reports and economic indicators, with a substantial portion of S&P 500 companies surpassing earnings estimates.

(With inputs from agencies.)