Tesla's Earnings Surge Ignites Market Gains Amid Sectoral Divergence

The Nasdaq and S&P 500 rose driven by Tesla's strong earnings forecast and decreased Treasury yields, boosting market sentiment. While Tesla gained 20.85%, other sectors suffered declines. The Consumer Discretionary sector rose 3.11%, but mixed corporate results and high Treasury yields impacted the market's overall performance.

Tesla's remarkable earnings forecast and a decline in Treasury yields have pushed the Nasdaq and S&P 500 to gain on Thursday, lifting market sentiment. Tesla shares soared 20.85%, poised to add more than $100 billion to its market value, following a robust third-quarter profit and a surprising prediction of significant sales growth.

This led to a 3.11% rise in the Consumer Discretionary sector, although other S&P sectors remained in the red due to mixed earnings results and still high Treasury yields. The yield on the benchmark 10-year Treasury note eased to 4.18%, after hitting a three-month high earlier.

Meanwhile, other tech stocks stumbled; Nvidia remained unchanged while Apple dropped slightly. That's in contrast to UPS, which rose 4.5% after reporting increased third-quarter profits due to cost reductions and rebounding volumes. As the earnings season continues, 78.6% of the 159 S&P companies have surpassed analyst expectations.

(With inputs from agencies.)