Tesla's stock experienced a significant surge following the release of a Consumer Price Index (CPI) report that indicated core inflation easing to 3.2% in December, slightly below expectations. This development has fueled optimism for a more dovish Federal Reserve policy in 2025, leading to a sharp decline in Treasury yields and enhancing the appeal of growth stocks like Tesla. The broader market's risk-on rally, spurred by the CPI data, has further bolstered investor sentiment, with the S&P 500 and Nasdaq futures also seeing substantial gains. Analysts suggest that the softer inflation figures, along with recent economic data, strengthen the case for potential Federal Reserve rate cuts later in the year, providing relief for markets and boosting hopes for a shift away from the current tightening cycle.
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) experienced a sharp decline, dropping 14.52% to $2.12 at 5:40 PM on Wednesday, January 15.