Tesla prices, Big tech earnings, Bitcoin - what's moving markets 🤔

1️⃣ Tesla cuts prices in China, Germany 🇨🇳🇩🇪

Tesla (NASDAQ: TSLA) has reduced prices globally due to declining in sales and intensifying price war. This move includes cuts in China and Germany, with CEO Elon Musk emphasizing the need for frequent prie adjustments to match production with demand. As a result reduction in global vehicle deliveries, the company decided to cut 10% of the workforce, potentially excedding 20,000 positions. As Tesla prepares to release its first-quarter earnings, forecasts anticipate significant declines in both operating profit and revenue, contributing to a more than 40% decline in its stock this year.

2️⃣ Futures edge higher, rebounding after sharp losses

U.S. stock futures rebounded on Monday, recovering from significant losses in the previous week, particularly in the tech sector.

By 04:25 ET, Dow futures were up 0.3%, S&P 500 futures climbed 0.4%, and Nasdaq 100 futures rose 0.5%. Last week, the S&P 500 and Nasdaq Composite indices dropped over 3% and 5.5%, respectively, as concerns about inflation reduced expectations of multiple interest rate cuts by the Federal Reserve in 2024.

Despite this, the Dow Jones Industrial Average performed relatively better due to its lower exposure to the tech sector. Market attention is on the release of the monthly personal consumption expenditures price index, a key inflation gauge, and upcoming quarterly earnings reports from the tech sector.

3️⃣ Big tech earnings due this week

Investors are closely shifting their attention from the banking sector to big tech as the quarterly earnings season unfolds.

Significant tech giants, including Tesla (NASDAQ: TSLA), Meta(NASDAQ:META), Microsoft (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) are set to report their earnings this week. However, overall expectations for S&P 500 earnings growth have tempered, with analysts now projecting a 2.9% year-on-year increase, down from the 5.1% estimate earlier in April.

Despite this, a significant portion of the growth is anticipated to come from the big tech powerhouses, excluding Tesla. UBS forecasts suggest that these companies could collectively drive a substantial 42.1% earnings growth in the first quarter.

4️⃣ Bitcoin’s halving event passes uneventfully

Bitcoin, the world's largest cryptocurrency, increased in value on Monday after its fourth halving event, which reduced the rewards for mining new Bitcoin. This event, occuring over the weekend, historically led to significant price jumps in 2012, 2016, and 2020 as investors adjusted to fewer new Bitcoins generation. However, this time, Bitcoin didn't go up much, even though people were less worried about a war between Iran and Israel. Currently, Bitcoin is trading lower than its highest price ever, $73,750, which it reached in March.

5️⃣ Crude slips as Iran-Israel tensions lessen

Crude prices declined on Friday, amiding hopes that tensions between Iran and Israel would ease, reducing the likelihood of major disruptions to oil supplies from the region. U.S. crude futures dropped 1.6% to $80.88 per barrel, while the Brent contract fell 1.5% to $86.00 per barrel by 04:25 ET.

This marked the largest weekly decline since February, following Iran's downplaying of Israel's retaliatory drone strike. Investors are now worried about how long-lasting high U.S. interest rates and inflation might affect economic growth and global oil demand.

Rising U.S. crude inventories are pressuring the market. Reports suggesting an anticipated increase in oil output by OPEC+ starting in July, following their decision to extend voluntary output cuts until the end of June.

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