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S&P 500 gives up some gains, but tech strength keeps bulls in control

Published 10-06-2023, 01:14 am
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Investing.com -- The S&P 500 gave up gains Friday, after entering a new bull market a day earlier, but remains supported by an ongoing climb in big tech and a Tesla-led jump in consumer stocks.

The S&P 500, which entered a bull market a day earlier after closing up 20% from its October low, was up 0.2%. The Dow Jones Industrial Average gained 0.1%, or 36 points, and the Nasdaq gained 0.3%.

Tesla Inc (NASDAQ:TSLA) jumped more than 3% to remain on track for an 18-day win streak as investors cheered news that General Motors is partnering with the electric vehicle maker to access its EV charging network.

The Tesla-GM collaboration will provide GM EV drivers with access to 12,000 Tesla superchargers, Wedbush says, noting that this is a “large monetization opportunity for the company in its supercharger story.”

The opportunity adds to Tesla’s “growing sum-of-the-parts valuation that we now peg at $300 per share with its developing energy business along with its well-established EV machine,” Wedbush said after adding Tesla to its best ideas list.

General Motors Company (NYSE:GM) and Ford Motor (NYSE:F), which recently also struck a similar deal to access Tesla’s superchargers, were also higher.

Big tech also added to gains from a day earlier, riding the ongoing wave of bullish sentiment as Wall Street continues to talk up the opportunity of artificial intelligence for tech giants, which have the capital needed to gain a stronghold in the emerging AI industry.

"The larger technology companies can absorb the costs of building these large language models, afford some of these computing costs, as well as comply with regulation,” Goldman Sachs said in a recent blog post.

Adobe (NASDAQ:ADBE), meanwhile, continued to rack up gains ahead of its quarterly results due Jun. 15 after Wells Fargo upgraded the stock to Overweight from Buy amid optimism that its AI progress will likely boost growth.

DocuSign (NASDAQ:DOCU) gave up gains, falling more than 3% after its better-than-expected quarterly results were overshadowed by cautious remarks from CEO Allan C. Thygesen who flagged slowing growth and a cautious customer backdrop.

Braze (NASDAQ:BRZE), meanwhile, rallied 16% after reporting quarterly results that were better than feared, prompting positive commentary from Goldman Sachs, which reiterated its Buy rating on the stock, citing potential AI-driven market share gains.

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