Tesla continues to soar, U.S. stocks hit new highs, while cryptocurrencies struggle to gain momentum

Yesterday, the U.S. stock market closed early in observance of Independence Day, with the S&P 500 and Nasdaq hitting record highs again. Tesla's TSLA stock surged by 6.54%, marking its third consecutive day of strong gains. However, the cryptocurrency market struggled, as Bitcoin briefly dropped below 60,000 and Ethereum fell to $3,251 at one point.

Fed: Cautious on Inflation Progress

According to CNBC, the minutes of the June Federal Reserve meeting released yesterday showed that most committee members believe that inflation is moving in the right direction but not fast enough to warrant a rate cut.

The minutes of the meeting reflected varying opinions from the 19 committee members, with some leaning towards raising rates when necessary. However, the majority view is that the economic growth is gradually cooling, and the current policy is considered "restrictive," a key term as officials weigh how much restrictive measures need to be taken to lower inflation without causing undue economic damage.

Since the meeting, Federal Reserve officials have generally maintained a cautious tone, emphasizing a "data-dependent" approach rather than predictions. However, several officials, including Chairman Powell, have indicated that continued encouraging inflation data will provide confidence to lower rates.

Powell's dovish stance led to a broad rally in U.S. stocks, while Bitcoin and Ethereum showed waning interest.

ADP Shows Possible Slowdown in U.S. Labor Market?

The ADP employment report, known as the "mini nonfarm" report, indicated that private employment in the U.S. increased by only 150,000 in June, down from 157,000 the previous month and below the expected 165,000. This marks the third consecutive month of slowing growth, suggesting that momentum in the U.S. labor market may be weakening.

The ADP report serves as a precursor to the nonfarm payroll numbers that the Labor Department will release on Friday. However, due to differences in scope and methodology between the two reports, they may not always show the same trends.

Tesla Rises for Third Consecutive Day, Stock Price Up Nearly 40% in a Month

U.S. markets closed early yesterday for Independence Day, with the S&P 500 and Nasdaq hitting new closing highs. Tesla's TSLA stock surged by 6.54%, marking the third consecutive day of strong gains.

Previously, Tesla had underperformed in the past year due to the overall sluggishness in the car market and low-cost competition from Chinese electric vehicle manufacturers. While other major tech giants were hitting new highs this year, Tesla was moving in the opposite direction, weighing down the market.

However, the market sentiment has shifted in recent days. Tesla's stock price soared over 10% after the company announced its second-quarter delivery numbers, which were 4.7% lower than the same period last year but exceeded analyst expectations. CEO Elon Musk will deliver a speech at the World Artificial Intelligence Conference (WAIC) in Shanghai on the 4th, where he is expected to showcase the Cybertruck and the new generation robot, Optimus Gen 2.

Tesla's stock price has seen strong gains for three consecutive days, with a nearly 38% increase in the past month.