Tesla Soars Nearly 6%... Is the Market Correction Over?

On Monday, the major indexes had mixed results. The Dow dipped slightly, while the Nasdaq and S&P 500 posted minor gains. Tesla saw a near 6% increase.

Is the market correction over? Will rate cut expectations support continued gains?

let's go over some details of the questions.

On the macro front, several analysts and financial experts predict that the Federal Reserve will signal a rate cut in this week's monetary policy meeting, paving the way for a potential rate cut in September. Today we can focus on the upcoming Macro economics data: The US FHFA House price index of May and the July US Conference Board Consumer Confidence Index of July.

S&p 500 index price was supported by the uptrend line，and then, its 2 days rebound began. however, the pullback has not finished yet since the short-term downtrend line has not been broken above. Therefore，it may signal the end of this pullback, and start to go bullish again if the price break above the downtrend line. on the contrary, it might continue drop if it failed to breakout.

In stock news, Tesla jumped nearly 6%. Morgan Stanley analyst Adam Jonas reiterated his overweight rating on Tesla stock with a price target of $310. Jonas emphasized that Tesla's cost-cutting measures and restructuring efforts have reduced the downside risks to its electric vehicle business.

From technical perspective，tesla stock price is moving in a bearish channel within an overall uptrend, and now it bounced to $234 resistance level. the price may start to move in a bullish market if it break above the bearish channel. otherwise, it might drop to next support level around $205.

McDonald's released its latest earnings report: revenue came in at $6.49 billion, with net profit at $2.02 billion, both falling short of expectations. McDonald's noted, "This quarter saw a decline in customer traffic at our US restaurants... More inflation-weary customers are seeking value-driven options." To attract diners, McDonald's is currently offering discounts. This strategy seems to be working so far, but whether it will help McDonald's turn things around remains to be seen.

Now let's check its' daily chart. we could see that McDonald stock price is moving in a consolidation box after reached the support level of previous low. so it signals trend reversal if the price latter break above the consolidation area. on the contrary, there's a high possibility to drop more if it break below the box.