Tesla (TSLA, Financial) saw its stock rise over 6%, pushing its market capitalization beyond $1 trillion. This surge comes as investors grow optimistic about the potential benefits for Tesla following Donald Trump's election victory. Tesla's CEO, Elon Musk, was a significant supporter of Trump's campaign, contributing at least $130 million. Tesla's market cap was $807.1 billion at the close of the previous trading day, and its stock has increased about 26% this year.
Billionaire Chris Rokos capitalized on the market reset post-Trump's election. His hedge fund, Rokos Capital Management, reportedly made nearly $1 billion in a single day. This marks one of the best trading days since the fund's inception in 2015. The fund's returns have increased by approximately 20% this year, with the assets under management reaching around $19 billion.
Stellantis announced layoffs of 400 workers at its Detroit auto parts plant to cut costs in its underperforming North American operations. The company aims to optimize its business for a strong start in 2025.
Boeing is considering selling its subsidiary, Jeppesen, for over $6 billion. This move is part of a strategy to alleviate its $58 billion debt. The sale process may begin as early as the first half of 2025.
The S&P 500 briefly reached the 6000-point milestone after Trump's re-election, driven by tech stocks like Nvidia. The rally was fueled by optimism about lower borrowing costs and a smooth economic trajectory for the U.S. After a recent interest rate cut by the Federal Reserve, another reduction is expected later this year.
U.S. Treasury yields have risen following Trump's electoral win, prompting concerns from Morgan Asset Management. If Trump's policies are enacted, yields could potentially rise to 5%, possibly impacting the stock market's record growth. This could shift investment from stocks to bonds if such levels are reached.
