General Motors’ recent earnings report has provided a boost to investor sentiment, potentially signaling positive trends for Tesla and the other members of the “Magnificent 7,” according to market strategists. On Monday afternoon, the Nasdaq Composite rose by 1.5%, gaining 277 points, following President Joe Biden’s decision to exit the presidential race and endorse Vice President Kamala Harris. The Dow Jones Industrial Average and S&P 500 also posted gains, increasing by 0.3% and 1.1%, respectively.
In related political news, a crypto-based betting platform, Polymarket, is backing Harris as the Democratic nominee for president, while PredictIt from New Zealand anticipates she will become the 47th president of the United States.
On the tech front, Nvidia shares experienced a 4% rise after Reuters announced the company’s plans to create a new version of its Blackwell AI chips specifically for the Chinese market. Nvidia will collaborate with local distributor Inspur to launch and sell the chip, tentatively named “B20,” expected to ship in the second quarter of 2025. The company did not provide further comments.
Tesla’s stock also saw a nearly 5% increase ahead of its earnings report, where CEO Elon Musk is expected to update investors on the long-delayed robotaxi project. Musk mentioned on social media that Tesla aims to have “genuinely useful humanoid robots” for internal use next year, with a hope for wider production for partner companies by 2026.
In contrast, CrowdStrike, the cybersecurity firm involved in a massive global tech outage last week, is still facing challenges from the incident. The company reported that a significant number of the 8.5 million impacted Windows devices have been restored to operational status. However, CrowdStrike stock fell over 13% on Monday, trading around $263.
Verizon, on the other hand, faced a nearly 6% drop in its stock price after releasing its quarterly earnings, which failed to meet revenue expectations due to a trend of customers holding onto their old phones longer. The telecommunications giant reported second-quarter revenue of $32.8 billion, just short of analysts’ consensus of $33.06 billion. Its earnings per share (EPS) remained in line with expectations at $1.15.