Wall Street hits record highs but Tesla takes a tumble

The S&P 500 and Dow Jones Industrial Average both achieved record highs by the end of the week, fueled by a strong kickoff to the third-quarter earnings season, which helped to offset concerns over last month’s unexpected inflation uptick.

Financial institutions, including JPMorgan Chase & Co., Wells Fargo & Co., Bank of New York Mellon Corp. and BlackRock Inc., all exceeded analyst earnings forecasts Friday, triggering a rally in the stocks and propelling the financial sector to new highs.

In contrast, Tesla Inc. faced investor disappointment after its much-anticipated “We, Robot” event that failed to impress. The EV giant's shares plunged Friday, making it one of the worst performers within the S&P 500 this week.

Chinese stocks, which had experienced a strong rally in recent weeks, saw their worst weekly performance of the year. The absence of expected stimulus measures from Chinese authorities weighed heavily on investor sentiment.

A recap:

That pesky inflation

September inflation reports for both consumers and producers came in higher than expected, while jobless claims posted the sharpest rise in over a year.

Despite the inflation uptick, interest rate expectations remained largely unchanged, with most traders and economists maintaining their outlook for a November rate cut . The unemployment spike was attributed to temporary factors, auto layoffs, the strike at Boeing and Hurricane Helene disruptions.

Tesla’s Robotaxi disappointment

Tesla's highly anticipated Robotaxi Day left analysts underwhelmed, with many noting more fanfare than substance. While the company showcased its Cybercab, Robovan and Optimus robot, key details about commercialization and timelines were lacking. The event sparked mixed reactions from investors, with concerns about whether Tesla can deliver on its ambitious autonomous vehicle promises.

More: The week in markets: Oil and gas stocks surge amid world tensions; Ford, GM sell more EVs

Mortgage rates surge

Mortgage rates saw a sharp reversal last week, jumping to 6.36% and leading to a 5.1% drop in homebuyer applications. The housing market awaits further rate cuts, but rising Treasury yields —driven by a resilient labor market — pose significant challenges to mortgage rate relief in the near term.

Google fights back

Google is challenging the Department of Justice's efforts to break up its search dominance, labeling the proposed antitrust remedies as radical. The tech giant argues the DOJ’s recommendations could dismantle its core business, impacting innovation and consumer choice.

Benzinga is a financial news and data company headquartered in Detroit.

This article originally appeared on Detroit Free Press: Wall Street hits record highs but Tesla takes a tumble