Market Swings: Tesla's Triumph Boosts Nasdaq & S&P, Amid Treasury Yield Worries

The Nasdaq and S&P 500 rose, spurred by Tesla's promising earnings forecast and a dip in Treasury yields. Despite gains, some sectors lagged due to mixed corporate results. Tesla's stock soared with optimistic sales projections, but blue-chip losses and election uncertainties affected broader market sentiment.

On Thursday, the Nasdaq and the S&P 500 experienced modest gains, catalyzed by Tesla's optimistic earnings projection and a decrease in Treasury yields from their recent peaks. The EV giant's shares surged, potentially boosting its market capitalization by over $140 billion, following its encouraging third-quarter profit report and high sales growth expectations for the upcoming year.

Tesla's performance bolstered the Consumer Discretionary sector, providing a much-needed lift to the benchmark S&P, which posted its first increase of the week. Despite this, sentiment remained fragile with several S&P sectors incurring losses, affected by mixed earnings reports and persistently high Treasury yields.

Meanwhile, the yield on the 10-year Treasury note cooled to 4.20% after hitting a three-month high. Market analysts continue to be cautious, as earnings reports from companies like IBM and Honeywell missed expectations, putting pressure on the Dow. Stocks pulled back recently from peak levels due to rate cut speculations and economic uncertainties as the U.S. election nears.

(With inputs from agencies.)