Justin Sullivan
The conclusion of the two-day FOMC meeting has brought some risk-on trading back to the stock market and relieved pressure in the electric vehicle sector. Jerome Powell is noted to have said "disinflation" 13 times during his FOMC press conference on Wednesday, and perhaps have presented a less hawkish tone than feared. The rally in the EV sector coincided with a strong day for tech stocks and renewed interest in cryptocurrencies as fears over the implications over high interest rates and a recession in the U.S. have appeared to be pushed aside for the moment.
Double-digit gainers in the electric vehicle sector on Thursday included Embark Technology(EMBK) +20.40%, Faraday Future Intelligent (FFIE) +19.97%, Ouster (OUST) +19.93%, TuSimple (TSP) +15.56%, QuantumScape (QS) +13.39%, AEye (LIDR) +13.28%, Arrival (ARVL) +12.22%, Microvast Holdings (MVST) +11.66%, Workhorse Group (WKHS) +10.35%, Mullen Automotive (MULN) +10.49%, and Proterra (PTRA) +10.00%.
Other notable gainers included Lordstown Motors (RIDE) +8.70%, Rivian Automotive (RIVN) +7.26%, and ChargePoint Holdings (CHPT) +5.88%. It is a quiet day on the news front for Tesla (NASDAQ:TSLA), but the EV giant is also rallying with shares up 7.01% to $194.13. TSLA is threatening to break through the $200 level for the first time this year.
Market backdrop: Short squeeze rallies may be firing up again - watch these stocks