Wall St to open higher on gains in Tesla, hopes of rate-hike pause
Wall Street’s main stock indexes were set to open higher on Friday as Tesla rose and shares of regional banks held steady after a selloff, while data-driven hopes of a pause in interest-rate hikes bolstered investor sentiment.
Both consumer and producer prices cooled a bit, while weekly jobless claims posted their sharpest rise in 1-1/2-years.
The University of Michigan’s preliminary reading on the overall index of consumer sentiment is expected to come in at 63.0 this month, down from 63.5 in April.
“It (markets) is bullish on the fact that we are not going to have a hard landing, and we are not going to have a big recession,” said Adam Sarhan, chief executive of 50 Park Investments.
“The Fed can pause because inflation is coming down. Even the banking failures that happened, the financial system was dented, but it didn’t break.”
Tesla Inc (TSLA.O) rose 2.1% in premarket trade and was the top gainer among its growth peers after top boss Elon Musk said he found a new chief executive for Twitter. The EV maker also raised the U.S. prices of its Model S, X, and Y vehicles.
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