Tesla Surges Amid Market Volatility as Fed Policy Awaits

Wall Street experienced mixed performance as Tesla surged ahead of key economic data, influencing potential Federal Reserve interest rate adjustments. Traders anticipate benefits from Trump's return, with Tesla jumping 9% and reaching a $1.1 trillion market value. Crypto stocks like Coinbase also rallied amid bitcoin's record highs.

Wall Street's leading indices displayed a mixed performance on Monday, approaching record highs as Tesla surged ahead of crucial economic data announcements potentially impacting Federal Reserve interest rate strategies. Tesla rocketed nearly 9%, attaining a market value of $1.1 trillion, driven by expectations of CEO Elon Musk's beneficial ties to President Trump.

Trading saw $56 billion of Tesla shares exchanged by mid-afternoon, dominating a quarter of all S&P 500 trades, LSEG data indicates. The financial index of the S&P 500 saw a 1.5% increase, with banks elevating the Dow Jones Industrial Average to an unprecedented high.

The small-cap Russell 2000 index soared 1.5%, nearing its highest mark since November 2021, with investors viewing smaller companies as advantageous under Trump's proposed tax reductions and relaxed regulations. Meanwhile, crypto assets soared as bitcoin crossed $84,000, with Coinbase Global leaping 22%.

(With inputs from agencies.)