Tesla shares jumped in premarket trading after Elon Musk was appointed head of Donald Trump’s new Department of Government Efficiency.
The electric vehicle maker rose 2.6% ahead of the market open, rebounding from a 6.2% drop on Tuesday. Tesla’s stock has surged over 30% since Trump’s election victory, bolstered by Musk’s vocal support and financial backing of the Republican’s campaign for the White House.
Meanwhile, broader US stock indexes were under pressure as rising Treasury yields weighed on interest rate-sensitive equities.
All three major Wall Street indexes ended lower on Tuesday, losing momentum after a strong post-election rally. The benchmark US 10-year Treasury yield climbed above 4.4% amid concerns that the President-elect’s policies could drive up inflation.
US stocks edge higher as inflation data meets expectations.
Wall Street’s major indexes remained steady on Wednesday after consumer price inflation rose in line with forecasts, reinforcing expectations for a Federal Reserve rate cut in December.
The Dow Jones Industrial Average dipped 30.5 points, or 0.1%, at the open to 43,880.46.
The S&P 500 gained 1.8 points, or less than 0.1%, to 5,985.75, while the Nasdaq Composite added 5.1 points, or less than 0.1%, to 19,286.46.
