Dow Clears 26,000 While SEC Bombshell Pressures Tesla Stock
Summary
The US stock market enters Tuesday’s trading session on an incline, with the Dow re-crossing a major milestone it had lost in the wake of the Boeing debacle and the S&P 500 and Nasdaq flashing gains as well. As the Dow once again flirts with 26,000 and the S&P 500 finally slays 2,800, some analysts are warning that the US stock market’s breathtaking 2019 rally could be about to hit a major roadblock. BlackRock Chief Equity Strategist Kate Moore, for instance, told MarketWatch that US stocks had been undervalued, which helped spark the first-quarter recovery. Meanwhile, bombshell testimony from the Securities and Exchange Commission (SEC) regarding Elon Musk’s social media activity threatens to place even more pressure on Tesla stock, which has already endured a rocky 2019. Bearish JPMorgan strategists have already begun to pound the table with claims that Musk’s days as Tesla CEO could be numbered, and even TSLA bulls like Citron Research have responded to the controversy by arguing, not that Musk will survive the SEC crackdown, but that Tesla has reached the point where its success no longer depends on its billionaire founder.