Wall Street Opens Cautiously as Tesla’s Stock Continues to Climb

Wednesday opened on Wall Street with a cautious upward trend, as the S&P 500 index, the Dow Jones index, and the Nasdaq technology index all rose by 0.1 percent. The S&P 500 index had closed the previous trading day at a record high of over 5,500 points, with a p/e ratio of about 25.8 based on the last 12 months’ numbers. This valuation is significantly high compared to historical levels.

In comparison, the OMXH25GI index in Helsinki, which considers dividends from the 25 largest listed companies, has a p/e factor of about 14.6, highlighting the relatively lower valuation in the Finnish market. Electric car manufacturer Tesla exceeded analysts’ sales forecasts, resulting in a more than 10 percent increase in the company’s share price during the previous trading day.

On a rainy Wednesday, economic data from the US presented interesting insights for investors. There were 238,000 new claims for unemployment benefits in the US the previous week, slightly above the forecast of 235,000. The US trade balance in May was -75.1 billion dollars, better than the forecast of -76.5 billion dollars. Additionally, 150,000 new private sector jobs were created in June, slightly lower than the forecast of 165,000.

Later in the day, more economic data from the US, including durable goods orders and factory order volumes, will be released. Despite the cautious optimism on Wall Street, investors will be closely monitoring these reports for further insights into the state of the US economy.