The Dow Jones Industrial Average rose more than 300 points on Monday after as AI chipmaker Nvidia $NVDA bounced back from last week’s steep decline. Tesla $TSLA 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 $MSFT, Facebook $META parent Meta, and Google $GOOGL parent Alphabet.
The Dow rose 325 points, or almost 0.9%, to 38,3211 in Monday afternoon trading. The tech-heavy Nasdaq $NDAQ jumped 1.1%, while the S&P 500 added 1%.
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 $TWTR.
Tesla stock was down 2.9% on Monday afternoon. 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 $MU Technology.
Nvidia stock recovered somewhat from Friday’s selloff and was among the top performers in the S&P 500, gaining more than 3.8% around mid-afternoon. But Super Micro Computer was down 1.6%.
–William Gavin contributed to the article.