The New York Stock Exchange rebounded on Tuesday.
The Dow Jones Industrial Average, tracking 30 blue-chip stocks, ended marginally lower.
As the White House confirmed that U.S. President Donald Trump would unveil and implement reciprocal tariffs on Wednesday, investors focused on the fact that the uncertainty would soon be resolved.
Tesla, set to release its Q1 shipment results the following day, saw its stock jump significantly. Despite reports of poor March sales in Europe, investors engaged in bargain hunting, believing the bad news was already priced in.
Dow slips marginally
Wall Street closed higher after a volatile session, shrugging off concerns about Trump’s tariffs and a potential U.S. economic slowdown.
The Dow Jones Industrial Average dipped 11.80 points (0.03%) to 41,989.96, slipping just below the 42,000 mark.
The S&P 500 index, which broadly reflects market trends, gained 21.22 points (0.38%) to 5,633.07, while the tech-heavy Nasdaq Composite surged 150.60 points (0.87%) to 17,449.89.
The Russell 2000, representing small-cap stocks, inched up 0.33 points (0.02%) to 2,012.24.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), Wall Street’s fear index, dropped 0.51 points (2.29%) to 21.77.
CoreWeave skyrockets
CoreWeave, an AI cloud software startup backed by Nvidia’s $250 million investment, saw its stock soar over 40% in just three trading days, dispelling concerns about its poor IPO performance.
CoreWeave shares surged $15.49 (41.77%) to $52.57.
This represents a more than 31% increase from its $40 IPO price.
The IPO, which was initially expected to price between $47 and $55 per share, was set at $40, with the number of shares issued reducing from 49 million to 37.5 million. Despite the failure, CoreWeave managed to turn things around within three trading days.
As the largest successful IPO since 2021, CoreWeave’s performance is expected to pave the way for other companies that had hesitated in their public offerings to follow suit.
Ticket reseller StubHub, Swedish fintech company Klarna, and telehealth provider Hinge Health are likely to pursue IPOs soon, buoyed by CoreWeave’s success.
Tesla takes off
The M7 big tech stocks all posted gains.
Tesla, in particular, saw a significant boost from bargain hunters one day before its Q1 shipment report.
Tesla shares jumped $9.30 (3.59%) to $268.46.
Analysts were divided on the outlook.
Gene Munster, managing partner at Deepwater Asset Management, projected a 35% growth rate for Tesla next year, while Wells Fargo advised selling, citing concerns about the company’s ability to rebound after disappointing quarterly shipments.
Nvidia gained $1.77 (1.63%) to close at $110.15, breaking a six-day losing streak.
Apple rose $1.06 (0.48%) to $223.19, and Alphabet climbed $2.65 (1.70%) to $158.88.
Microsoft (MS) advanced $6.80 (1.81%) to $382.19, while Meta Platforms increased $9.64 (1.67%) to $586.00.
Amazon also finished higher, gaining $1.91 (1.00%) to close at $192.17.
FDA layoffs rattle pharmaceutical stocks
News of significant layoffs at the Food and Drug Administration (FDA) sent shockwaves through the pharmaceutical sector.
The FDA plays a crucial role in new drug approvals, determining the scope of new drug applications and negotiating prices with pharmaceutical companies.
There are growing concerns that a reduced FDA workforce could hinder the operations of pharmaceutical firms.
Eli Lilly, which recently became the world’s largest pharmaceutical company by market capitalization thanks to its weight-loss drug Zepbound, saw its stock plummet $20.68 (2.50%) to $805.23.
COVID-19 vaccine maker Pfizer dropped $0.80 (3.16%) to $24.54, while Moderna fell $1.19 (4.20%) to $27.16.
The S&P 500 pharmaceutical index tumbled 41.59 points (3.81%) to 1,049.18.
