A bit of a head-scratching moment in the stock market as Apple stock, Google stock and Amazon stock all jumped overnight.
Meta (Facebook), Tesla and Coinbase are also on the rise.
And investors aren’t entirely sure why.
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On the face of it, not much has changed.
The stock market famously doesn’t like it when the Federal Reserve adjusts rates and Jerome Powell, the man at the wheel, has hinted more rate hikes may come.
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Even Meta shares rocketed 23 percent despite missing earnings expectations.
Zuckerberg’s company was projecting $2.26 EPS (Earnings Per Share) but actually only hit $1.76 EPS.
That’s the same as a car hitting 250 km/h when the manufacturer said it could do 300.
Mind you, the proof may be in the pudding here.
First and foremost, tech stocks and crypto tend to go hand in hand and the crypto market has been recovering big time over the last two weeks.
In addition to that, Coinbase shares went up after a federal judge dismissed a class-action lawsuit against the crypto exchange.
For the record, Coinbase is the only prominent crypto exchange that’s also a public company.
Secondly, the stock market mantra is ‘buy the rumor, sell the news’ and rumor has it the Fed might actually ease up on interest rate hikes despite what its chairman has said.
Moreoever, the aforementioned companies made moves and announcements that investors apparently deemed promising.
Tesla, for example, drastically slashed new car prices just a few days ago.
Buyers may end up saving a whopping $13,000 on a brand new Tesla Model Y once you factor in new pricing and new Federal tax cuts on EVs.
As for the crypto market, the FTX fiasco has been priced in by the market and ‘digested’ by investors.
Crypto ‘bros’ feel like the chips may have already fallen and even though there was significant damage, there’s a widespread feeling that the worst may be behind us.
