Tesla Stock Jumps 8%, Apple Stock Tumbles 10% This Week Despite Soft US CPI Inflation Rate
The US CPI inflation rate for February came below expectations, helping stock markets, but the Apple stock continues to fall.
After a global market selloff on Monday, stocks stabilized yesterday and opened higher today, buoyed by softer US CPI inflation data. The latest report increased expectations for Federal Reserve rate cuts, with markets now pricing in 76 basis points of cuts by year-end, up from 70 basis points before the release. This has weakened the US dollar, while tech stocks and major indices show signs of recovery.
The auto manufacturing sector is leading today’s gains, with Tesla (TSLA) soaring 8%, reflecting renewed investor confidence. The rally is likely driven by strong quarterly production data or optimistic future forecasts.
Tesla Stock Rallies After Heavy Losses
Tesla shares have been on a wild ride this week. On Monday, as global markets tumbled, TSLA dropped over $40 to $218. However, buyers stepped in yesterday, lifting the stock to $230 by the close, a 3.5% gain.
Today, Tesla gapped higher at the open, surging to $250 for an 8% increase, though it is now facing some resistance at this level. Despite this strong rebound, TSLA remains over 45% below its December 2024 peak of $488.
Apple Stock Continues to Slide on Siri 2.0 Delay
While most major tech stocks are rebounding, Apple (AAPL) is the exception, extending its decline. After peaking above $260 in December, Apple has been on a downtrend and opened lower again today, slipping another 2% from yesterday’s close of $221.07.
Apple is the only major stock in the red today, with selling pressure intensifying after Bloomberg reported that Apple’s AI-powered assistant upgrade, Siri 2.0, has been indefinitely delayed. The stock opened with a bearish gap, breaking below the 100-day SMA at $224 and continuing to decline, now down nearly 3%.
US February CPI Inflation Report – Key Highlights![US core CPI]()
Headline CPI:
- Year-over-year: +3.0% vs +3.2% expected (Prior: +3.3%)
- Month-over-month: +0.2% vs +0.3% expected (matches lowest since October)
- Unrounded month-over-month: +0.216% vs +0.467% prior
Core CPI (Excluding Food & Energy):
- Year-over-year: +3.1% vs +3.2% expected (Lowest since 2021)
- Month-over-month: +0.2% vs +0.3% expected
- Unrounded month-over-month: +0.227% vs +0.446% prior
Other Key Metrics:
- Real Weekly Earnings: +0.1% vs -0.3% prior
- Core Services: +0.252%
- Core Services Ex-Shelter: +0.3% vs +0.757% prior
- Core CPI Services Ex-Rent/OER: +0.3% vs +0.5% prior
- Services Ex-Energy: +0.24% vs +0.5% prior
In February, the shelter index increased by 0.3 percent, making up over half of the monthly gain in all goods. A 4.0 percent drop in the airline prices index and a 1.0 percent drop in the gasoline index largely countered the shelter gain.
Conclusion: Tesla Gains Momentum While Apple Struggles
With Fed rate cut expectations rising, the market is showing renewed strength, but Apple remains under pressure amid concerns over its AI strategy. Meanwhile, Tesla’s strong rally suggests growing investor optimism, though key resistance levels could determine the next move.
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