The conclusion of the two-day FOMC meeting has brought some risk-on trading back to the stock market and relieved pressure in the electrical vehicle sector. Jerome Powell is noted to have said “disinflation” 13 times during his FOMC press conference on Wednesday, and maybe have presented a less hawkish tone than feared. The rally within the EV sector coincided with a powerful day for tech stocks and renewed interest in cryptocurrencies as fears over the implications over high rates of interest and a recession within the U.S. have gave the impression to be dismissed for the moment.
Double-digit gainers in the electrical vehicle sector on Thursday included Embark Technology(EMBK) +20.40%, Faraday Future Intelligent (FFIE) +19.97%, Ouster (OUST) +19.93%, TuSimple (TSP) +15.56%, QuantumScape (QS) +13.39%, AEye (LIDR) +13.28%, Arrival (ARVL) +12.22%, Microvast Holdings (MVST) +11.66%, Workhorse Group (WKHS) +10.35%, Mullen Automotive (MULN) +10.49%, and Proterra (PTRA) +10.00%.
Other notable gainers included Lordstown Motors (RIDE) +8.70%, Rivian Automotive (RIVN) +7.26%, and ChargePoint Holdings (CHPT) +5.88%. It’s a quiet day on the news front for Tesla (NASDAQ:TSLA), however the EV giant can also be rallying with shares up 7.01% to $194.13. TSLA is threatening to interrupt through the $200 level for the primary time this 12 months.
Market backdrop: Short squeeze rallies could also be firing up again – watch these stocks