Wall Street Rebounds: Producer Inflation Misses Estimates, Tesla Gains, Chinese Stocks Rally

The U.S. stock market rebounded on Friday, with the Dow Jones Industrial Average (DJIA) gaining 1.6%, the S&P 500 index rising 1.5%, and the Nasdaq composite index climbing 1.6%. This rally came despite a miss on producer inflation estimates, as well as concerns about the impact of good news on the job market on inflation and interest rates. The Standard & Poor’s 500 tumbled 1.5% to close its fourth losing week in the last five. The Dow Jones industrial average and the Nasdaq composite index both sank 1.6%.



Tesla shares jumped 12% on Wednesday, a day after the electric vehicle maker announced an accelerated production timeline for new products despite missing analyst expectations. Bank of America upgraded Tesla stock to a "buy" rating, saying that the company addressed concerns and highlighted positive catalysts. Wedbush analysts maintained an "outperform" rating but lowered their price target, saying that "execution of the lower cost vehicle and driving incremental demand in the key China market must be flawless." UBS also lowered its price objective, citing little clarity on Tesla's new products. JPMorgan analysts said that while Tesla shares "may be rescued near term," they have concerns about long-term sustainability.