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Tesla (TSLA+7.99%), Nvidia (NVDA+6.48%) and chip stocks led a Nasdaq rebound in early morning trading on Wednesday.
The Nasdaq Composite index gained more than 1% in early morning trading, following a February CPI report showing that inflation slowed more than expected last month. The rebound was more muted in the rest of the market, with the S&P 500 up only about 0.5% and the Dow Jones Industrial Average down more than 130 points, or about 0.3%.
Tesla was up more than 6% and Nvidia was up more than 5% in early morning trading. This followed a particularly rough start to the week, as investors became increasingly worried about the effects of President Donald Trump’s unpredictable tariff policies.
Tesla stock, in particular, has been on a steady decline amid blowback over CEO Elon Musk’s political activities and his work to slash government spending through the Trump administration’s Department of Government Efficiency. Protests against the company’s showrooms and facilities, as well as vandalism of Tesla cars, have increased recently.
In response, Trump on Tuesday brought five Teslas to the White House’s southern lawn, including a cherry red Model S which he ended up purchasing. Also on Tuesday, Musk shared in an X post that Tesla would commit to doubling its vehicle production in the U.S. over the next two years.
Chip stocks were up following news that Taiwan Semiconductor Manufacturing Co. (TSM+3.70%) approached chip giants Nvidia, AMD (AMD+5.00%), and Broadcom (AVGO+2.64%) to form a joint venture to run Intel’s (INTC+4.63%) foundry division. TSMC would run the operations, but would not own more than 50% of the assets, according to Reuters.
Earlier in March, the White House announced that TSMC plans to invest at least $100 billion in building out chip manufacturing plants in the U.S. over the next four years.
In morning trading, Intel, TSMC, and Broadcom were all up more than 3%, and AMD was up more than 2%.
Tech giant Palantir (PLTR+7.76%) was also up more than 4% after the company announced late Wednesday that it will be hosting its sixth Artificial Intelligence Platform event on Thursday.