Tesla Motors Inc (NASDAQ:TSLA) and other Wall Street darlings appear headed for partial recovery this morning after gains in premarket trading. Tesla shares rose 3 percent, while fellow Wall Street favorite Netflix, Inc. (NASDAQ:NFLX) gained 4 percent. Other favorites, like Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB) and LinkedIn Corp (NYSE:LNKD) showed modest gains of less than 2 percent in premarket trading.
Tesla and the stock market bubble
One of the big problems for Tesla Motors Inc (NASDAQ:TSLA) and other stocks which have been on a hot streak this year is the speed at which they have risen. The government shutdown and worries about the debt ceiling have sent ripples through the markets over the last week or so.
At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More
So what’s changing Wall Street’s mind? This morning Treasury Secretary Jack Lew testified about the debt ceiling. He urged Congress to act and gave explanations of what could happen to the U.S. economy if Congress does not raise the debt ceiling. He also outlined a history of bipartisan support for raising the ceiling.
Also this morning the markets may have been reacting to the nomination of Janet L. Yellen to lead the Federal Reserve. Stocks started to react a bit better after her nomination was announced yesterday. Also hints of progress in the government shutdown are likely giving them a boost this morning.
Other market indicators rising
In addition to major stocks, the U.S. dollar also strengthened, approaching a three-week high versus the majority of the world’s major currencies. The NASDAQ fell on Wednesday thanks to falling stars like Tesla Motors Inc (NASDAQ:TSLA), Netflix, Inc. (NASDAQ:NFLX) and others. The NASDAQ Composite index declined on Wednesday but could be headed for at least a partial recovery today if technology stocks continue to rise after the markets opened.
Global stocks were also rising on Thursday, with European stocks edging 1 percent higher and aiming for their best day in a month after closing at their lowest level since Sept. 5 on Wednesday