The S&P 500 Gains and Losses Today: Tesla Shares Jump After Model Y Price Increase

Key Takeaways

• The S&P 500 added 0.6% on Monday, March 18, 2024, as rallying tech stocks helped the index push higher ahead of this week’s Fed meeting.
• Tesla shares moved higher after the carmaker announced price increases for its Model Y vehicles.
• Shares of Super Micro Computer reversed early gains to post significant losses on the tech firm’s first day as an S&P 500 component.

Major U.S. equities indexes jumped higher on Monday ahead of this week’s Federal Reserve meeting. Although the central bank is likely to hold interest rates steady for now, investors will be watching closely for confirmation that rate cuts are on the horizon.

Optimism around artificial intelligence (AI) opportunities once again took center stage as Nvidia (NVDA) kicked off its GPU technology conference, underpinning gains for the tech sector and several of its big names.

The S&P 500 added 0.6% on the day. The strong performance from the tech sector helped the Nasdaq add 0.8%, while the Dow closed the session 0.2% higher.

Tesla (TSLA) shares led the way for the S&P 500, popping 6.3% after the company announced a $1,000 price increase for the Model Y, its most popular electric vehicle (EV), starting April 1. Tesla had already boosted Model Y price tags at the beginning of March after cutting prices on some of its vehicles in China, Europe, and the U.S. earlier in the year.

Shares of Match Group (MTCH) gained 4.7% Monday. News emerged late last week that the owner of Tinder and other online dating platforms had attracted interest from activist investor Anson Funds. The activist investor is reportedly pressuring the company to make changes to its board of directors. Goldman Sachs also included Match Group on a list of companies that could benefit from increased productivity thanks to AI.

Alphabet (GOOGL, GOOG) shares jumped after reports that the Google parent company is in talks with Apple (AAPL) to incorporate Google’s Gemini AI technology in future iPhone operating systems. While Apple is reportedly developing its own AI capabilities, it may license technologies from other companies for performing larger AI tasks like generating long texts and images. Apple shares were up 0.6% on the day.

Super Micro Computer (SMCI) shares posted the steepest losses on the S&P 500 on their first day as a component of the benchmark index. After moving higher to start the day, shares of the tech firm reversed course, closing the session down 6.4%.

Shares of International Paper (IP) tumbled 3.9% after reports that one of the company’s directors sold around $21,000 worth of the stock. The paper and packaging producer has been under pressure amid lower earnings and an uncertain market outlook.

Shares of VF Corp. (VFC), the parent company of Vans, The North Face, and other apparel brands, sank 2.7%. The downturn followed news that a top executive at Vans would step down at the end of the month amid ongoing efforts to turn around the struggling brand.

In conclusion, Monday’s market performance was driven by positive sentiment around tech stocks and AI opportunities. Tesla’s price increase for the Model Y boosted its shares, while other companies like Match Group and Alphabet also saw gains. However, Super Micro Computer experienced losses on its first day as an S&P 500 component. Investors will continue to monitor developments in the tech sector and upcoming Fed meetings for further market insights.

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