The Dow Jones Industrial Average rose more than 125 points on Monday morning as AI chipmaker Nvidia bounced back from last week’s steep decline. Tesla stock continued its recent slide ahead of Tuesday’s closely watched earnings report for Elon Musk’s EV maker.
Other companies reporting results in a busy earnings week include Microsoft, Facebook parent Meta, and Google parent Alphabet.
The Dow rose 133 points, or 0.3%, to 38,120 shortly after markets opened. The tech-heavy Nasdaq jumped 0.6%, while the S&P 500 added 0.4%.
The yield on the 10-year Treasury increased slightly to 4.64%. Oil prices dropped even further, with West Texas Intermediate futures trading at $81.40 per barrel.
Tesla stock drops as Elon Musk cuts prices again
Tesla has cut prices across several of its major markets — including China, Germany, and the U.S. — to combat slowing demand for electric vehicles ahead of a major earnings report due Tuesday.
Earlier this month, Tesla reported its first quarterly year-over-year sales decline since 2020. The Austin, Texas-based automaker sold 10% less Model 3 compact cars and Model SUVs, which make up the majority of its deliveries.
“Tesla prices must change frequently in order to match production with demand,” Musk said Sunday on X.
Tesla stock dropped more 3% on Monday morning. The stock is down more than 42% so far this year, making Tesla one of the worst performers in the S&P 500
Nvidia stock recovers but Super Micro Computer struggles
Last Friday saw a big jolt for AI stocks, after Super Micro Computer announced it would not pre-announce earnings and that it would report fiscal third-quarter results on April 30. The stock fell more than 23% and helped drag down other AI stocks, including Nvidia and Micron Technology.
Nvidia stock recovered somewhat from Friday’s selloff and was among the top performers in the S&P 500, gaining more than 3% around mid-morning. But Super Micro Computer was among the worst-performing stocks Monday, losing almost 3%.
–William Gavin contributed to the article.