- Tesla’s shares soared by 6.9% due to a record number of vehicle deliveries.
- Major banks experienced share price increases as they successfully raised dividends.
- A survey revealed that US manufacturing further declined in June.
US equities closed the holiday-shortened session on Monday with slight gains, aided by a surge in Tesla stock and the strength of bank shares as the second half of the year began on a subdued note.
Tesla’s shares soared by 6.9% after the electric vehicle manufacturer announced a record number of vehicle deliveries during the second quarter.
Major banks experienced share price increases as they successfully raised dividends following the Federal Reserve’s annual health assessment. Trading volumes were below average as the stock market closed early in anticipation of Tuesday’s July 4th Independence Day holiday.
According to Chuck Carlson, the CEO of Horizon Investment Services in Hammond, Indiana, many market participants were absent from trading activities on this day. He stated, “Nobody is really placing any big bets on either side of the market right now.”
The US stock market concluded the first half of the year with higher values, as major equity indexes ended positively. The Nasdaq Composite achieved its most significant first-half gain in 40 years, rising by 31.7%. While mega-cap stocks have played a prominent role in driving the performance of indexes this year, recent indications suggest a broader rally in the market.
On Monday, a closely monitored segment of the US Treasury yield curve experienced its most significant inversion since 1981, reflecting concerns within financial markets about the state of the economy.
US manufacturing PMI (Source: Institute for Supply Management)
Elsewhere, a survey revealed that US manufacturing further declined in June. It hit levels last observed during the initial wave of the COVID-19 pandemic when the economy was severely affected.
On the other hand, European equities reversed their earlier gains and ended the day lower on Monday. AstraZeneca’s decline in healthcare stocks outweighed the positive performance of Generali and mining companies.
Shares of AstraZeneca, the British drugmaker, experienced a significant drop of 8.0%, marking its worst day since March 2020. Analysts expressed concerns that the benefits from its experimental lung cancer drug might not be as significant as anticipated.
On the other hand, mining stocks were the top gainers among sectors, rising by 2.2%, as most metal prices increased. This was due to expectations of a stronger economic stimulus package from China following the slowdown in the country’s factory activity in June.
