US NASDAQ market, let’s trade after knowing this [July 3rd week]

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This Week's Nasdaq Market Issues

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This week, the Nasdaq market experienced significant volatility due to various factors. Let's review the main issues.

1. Tesla's Strength

Tesla (TSLA) saw a consistent upward trend in its stock price this week. Tesla's recent announcement of second-quarter results, which showed a smaller-than-expected decline, led to a stock surge of over 25%. This turnaround was a significant recovery from Tesla's earlier struggles this year. Additionally, the news of Chinese state-owned enterprises purchasing Tesla vehicles contributed to the stock's rise. These positive developments have garnered favorable reactions from investors, boosting Tesla's stock price significantly​ (Nasdaq)​​ (Investopedia)​.

 

2. Strength in Tech Stocks

Tech stocks led the Nasdaq's rise this week. Notable performers included Microsoft (MSFT) and CrowdStrike (CRWD). Microsoft garnered investor interest due to its growth in artificial intelligence and cloud computing, while CrowdStrike benefited from increased demand for cybersecurity solutions. The tech sector, known for its high growth potential due to new technology adoption and digitalization, continues to attract investors​ (Nasdaq)​.

3. Economic Indicators and Fed Rate Cut Expectations

U.S. job growth slowed in June, raising expectations for a Federal Reserve rate cut. The unemployment rate rose to 4.1%, increasing the likelihood of the Fed reducing interest rates to stimulate the economy. These economic indicators positively influenced the stock market, with investors maintaining confidence in the market due to the anticipated rate cuts​ (Nasdaq)​​ (Investopedia)​.

4. Increase in Volatility Index (VIX)

The VIX (Volatility Index) rose by 1.8% to 12.48 this week, indicating a slight increase in market volatility. This rise reflects investors' sensitivity to economic indicators and Fed policies. Investors are closely monitoring market volatility and focusing on risk management within their portfolios​ (Nasdaq)​.

 

Weekly Summary

Overall, the Nasdaq saw a rise this week, driven by the strength of tech stocks and positive economic expectations. Tesla's stock rebound and hopes for a Fed rate cut were major contributing factors. The strength in tech stocks and positive economic signals injected vitality into the market, fostering investor confidence.

For more detailed information on this week's Nasdaq market, visit here.