Tech gloom quickly fades

[PocketOption]

Tech gloom quickly fades

Tesla results get investors back on board

Stock markets are pushing higher again on Thursday, with the Nasdaq this time taking part after Tesla reported strong numbers for the first quarter.

The doom and gloom following Netflix’s earnings report didn’t last long in another sign of investor resilience to bouts of negativity. Of course, it’s worth noting that it came in what has otherwise been a strong start to earnings season, something Tesla on Wednesday contributed to as it shrugged off the various challenges it’s facing from chip shortages to Chinese lockdowns.

The Tesla numbers really were very encouraging despite the incredibly challenging environment for automakers. Higher revenue, earnings and delivery forecasts are all music to the ears of investors and even the long waiting lists highlight just how much demand there is for a Tesla, despite the long wait time.

Powell, Lagarde and Bailey comments eyed

The primary focus for investors right now continues to be what central banks are doing and whether their efforts will bring inflation back to a more acceptable level. They’re moving at very different speeds; in the BoJ’s case, they’re effectively going in reverse. But slowly but surely, most are heading in the same direction and picking up the pace.

Commentary from policymakers has become increasingly hawkish recently, most notably in the case of the Fed and ECB. Both heads – Jerome Powell and Christine Lagarde – will appear at an IMF forum today, while the BoE Governor Andrew Bailey is due to speak in Washington.

Considering some of the comments we’ve had in recent days from some of the more hawkish members of the various committees, it will be interesting to see just how much those views are shared across them.

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