Market Moves: GM’s Earnings Spark Optimism Amid Tech Shifts

General Motors reported better-than-expected earnings, raising optimism for Tesla and other companies in the “Magnificent 7,” according to strategists. The Nasdaq Composite increased by 1.5%, adding 277 points on Monday afternoon, following President Joe Biden’s decision to withdraw from the presidential race and endorse Vice President Kamala Harris. The Dow Jones Industrial Average and S&P 500 also saw gains of 0.3% and 1.1%, respectively.

Polymarket, a crypto-based betting platform, supports Harris as the Democratic nominee for president, while PredictIt projects her as the 47th president of the United States.

Nvidia saw its shares rise 4% in the afternoon after Reuters unveiled that the company is creating a version of its new Blackwell AI chips specifically for the Chinese market. Nvidia plans to collaborate with local partner Inspur to introduce and market the chip, tentatively named “B20,” which is expected to start shipments in the second quarter of 2025. Nvidia has not commented on the report.

Tesla’s stock climbed nearly 5% ahead of its upcoming earnings report, during which CEO Elon Musk is expected to discuss the delays surrounding the company’s robotaxi launch. Musk stated on X that Tesla aims to have “genuinely useful humanoid robots” in low production for internal use by next year and in higher production for other companies by 2026.

Meanwhile, CrowdStrike continues to address the repercussions of Friday’s significant global tech outage, with some progress in restoring operations. The company reported that a considerable number of the approximately 8.5 million Windows devices affected are now back online. However, CrowdStrike’s stock dropped over 13% on Monday, trading around $263.

Verizon experienced a nearly 6% decline after announcing its quarterly earnings. The telecommunications giant missed revenue expectations due to customers keeping their old phones for longer, impacting upgrade rates. Verizon’s second-quarter revenue was reported at $32.8 billion, slightly below the average analyst estimate of $33.06 billion, while its earnings per share stood at $1.15, meeting projections.

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