Wall Street opened a new week on an optimistic note. The market revived amid positive expectations triggered by the broad-based use of artificial intelligence by high-tech giants. Tesla logged the biggest gains yesterday.

Sentiment on Wall Street turned sour on Tuesday. The stock indices pulled back from yesterday’s highs as investors are cautious ahead of the US inflation data.

Amid the empty economic calendar on Monday, investors turned attention to corporate news which encouraged optimism and growth on the benchmark indices.
The Dow Jones grew by 0.25%. The Nasdaq was the best performer as it closed 1.14% up. The S&P 500 added 0.67% to close at 4,487.
The major stock indices traded in the red in the pre-market. Futures on the stock indices shed 0.3-0.47%. The S&P 500 is expected to trade in the intraday corridor between 4,440 and 4,500.
The Nasdaq spiked yesterday on the back of the rally in Tesla shares. The electric car manufacturer's stock jumped by 10% after Morgan Stanley upgraded the company's rating from "neutral" to "overweight". The reassessment was driven by the belief that the supercomputer Dojo could zoom up Tesla's market value by almost 600 billion dollars.
The rally of Tesla shares also lifted the shares of other mega-cap companies. In particular, Amazon leapt by 3.5%, while Microsoft shares rose by 1.1%.
Meta shares also jumped by 3.25% after a Sunday report indicated that the social media platform is working on a new, more powerful artificial intelligence system.
Qualcomm shares surged by 3.9% after the chip manufacturer signed a new agreement with Apple to supply 5G chips at least until 2026.
Walt Disney shares grew by 1.2% after reaching an agreement to return Disney programs, including ESPN, to the Spectrum cable service just hours before the start of Monday's NFL games.
Apart from the striking corporate news, a survey from the Federal Reserve Bank of New York showed that Americans' overall views on inflation in August remained largely unchanged, as they predicted increases in housing and food prices, although they anticipated deterioration in personal financial welfare. The market did not react to this data.
Meanwhile, according to FedWatch data, traders have slightly increased the odds of the Fed taking a pause in November. The probability now stands at 57%, up from the recent 54%.
Out of the 11 sector indices in the S&P 500, nine saw an increase, led by consumer goods and communication services. Interestingly, trading volumes on US exchanges were low on Monday, and this trend might carry over into Tuesday.
While both stock futures and bond yields have slightly decreased ahead before the opening bell, the fact that they are moving in tandem is notable. Investors are awaiting inflation data for August, which is due tomorrow, and producer price data scheduled for Thursday.
The recent surge in oil prices and robust economic data have intensified concerns about persistent inflation, clouding the prospects of the Fed ceasing its monetary tightening.
In terms of macroeconomics, the NFIB's small business study for the past month was released today. The survey indicated that US small business sentiment declined last month for the first time since April due to concerns over stubborn inflation and staff shortages. However, these figures are unlikely to make a significant impact on the market.
In the corporate sector, mega-cap stocks are pulling back today from the highs reached on Monday. Tesla shares dropped by 0.9% ahead of the opening bell, while other high-cap stocks, including Amazon and Microsoft, fell by 0.6% and 0.7%, respectively.
Apple shares increased in pre-market trading, rising by 0.2% in anticipation of the new iPhone 15 launch. Meta also managed to maintain a slight increase of 0.2%. Shares of the cloud service provider Oracle plunged by 10.4% following revenue forecasts for the current quarter below target figures. Paramount Global shares added 1% as the main shareholder reached an agreement to restructure debt with its creditors.
The US dollar index is regaining its footing against rival currencies. Its index has recovered by 0.24% to trade at 104.80. The intraday corridor for the index is seen between 104.5 and 105.08.

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