Shares of electric vehicle (EV) maker Rivian Automotive (RIVN 0.27%) jumped by 7.3% Thursday on seemingly no company-specific news.
The EV stock appears to have benefited as some investors regained a bit of optimism about the market due to upbeat quarterly results from several companies.
The tech-heavy Nasdaq Composite index closed Thursday up 2.7% after Dollar Tree's quarterly earnings came in higher than analysts' average estimate. Additionally, Chinese e-commerce giant Alibaba Holdings reported better-than-expected earnings -- news that gave a boost to other tech stocks.
Gains from retail stocks Williams-Sonoma and Lululemon Athletica also added to investor enthusiasm in the broader market today. Yesterday, Williams-Sonoma reported earnings and revenue that beat expectations, which caused its share price to jump 13.1% today. Additionally, Lululemon surged 10.3% during today's trading after an analyst upgraded the company's stock.
While none of these companies are in the same exact industry as Rivian, investors across all sectors have been keeping a close eye on a range of companies' quarterly results to determine if consumer demand for products is waning.
With many companies across multiple sectors performing better than expected in their respective industries, some investors grew less concerned about the potential for a looming slowdown in consumer spending.
That's good news for Rivian shareholders. The company's share price is down by 54% over the past three months as the markets have reacted to its rising product costs and high inflation.
While Thursday's rebound was good for Rivian shareholders, they may want to temper their expectations, at least for now.
Rivian is still in the process of ramping up its vehicle production, and it faces significant headwinds with inflation running at a nearly 40-year high and supply chain issues still plaguing some parts of the auto industry.
Those problems are hardly unique to the EV maker -- all of its competitors face them as well. But Rivian could have to contend with continued impediments as the macroeconomic environment weighs down on its growth.