Tesla (TSLA +2.73%) stock is seeing strong bullish momentum in Wednesday's trading. The electric vehicle (EV) company's share price was up 8% as of 2 p.m. ET. Meanwhile, the S&P 500 (^GSPC +0.67%) was up 0.6%, and the Nasdaq Composite (^IXIC +1.25%) was up 1.2%.
NASDAQ: TSLA
Key Data Points
After turbulent trading at the beginning of the week due to recession fears, Tesla stock is posting big gains today following better-than-expected inflation data. The company's share price is also getting a boost from a recent show of support from President Trump.
Tesla stock jumps on latest CPI report
The Bureau of Labor Statistics published its latest Consumer Price Index (CPI) report this morning, and inflation in February came in lower than anticipated. The CPI increased 2.8% year over year in February, coming in below the 2.9% level called for by economists and the 3% increase seen in January. Core CPI, which backs out food and energy categories from tracking, increased at a 3.1% annual rate -- below the 3.2% estimated rate and January's increase of 3.3%.
The better-than-expected inflation report is boosting hopes that the Federal Reserve will return to cutting interest rates, which would be good news for Tesla and other growth stocks.
Tesla is also getting another Trump bump
After recently saying that he planned to purchase a Tesla to support the business and its CEO Elon Musk, President Trump held an event at the White House yesterday in which he hosted Musk and publicly checked out five of the company's vehicles. Trump indicated that he would be purchasing one of Tesla's Model S cars, and also praised the other vehicles in the company's lineup.
The relationship between Trump and Musk has been a significant catalyst for Tesla's share price recently, with the impact sometimes alternating between bullish and bearish, but investors seem to have a positive view on yesterday's showcase.
