Tesla sees 18% jump this month following a proposed $1 trillion pay package for Elon Musk

Tesla and Micron are running hot as the S&P 500 locks in another record, ending the week at 6,600.21. That move followed higher unemployment claims and a drop in wholesale prices, pushing traders to fully expect the Federal Reserve to cut interest rates by 0.25 percentage points next ￰0￱ index rose 1.6% this ￰1￱ that rally has shoved certain stocks into overbought territory, and two of the loudest names on that list are Tesla and ￰2￱ from CNBC flags S&P 500 names with gains above 5% and relative strength indexes (RSI) over ￰3￱ threshold is where traders usually get twitchy, anything above 70 often signals too much buying too ￰4￱ now holds an RSI of 81.2, while Tesla is sitting at ￰5￱ makes both stocks extremely vulnerable to sudden reversals, especially if investors decide to cash ￰6￱ hits 2020-level gains as analysts raise targets Micron’s stock surged 20% this week, the biggest five-day jump for the chipmaker since March ￰7￱ move followed a price target upgrade by Citi on Thursday, which bumped their estimate to $175, an 11% gain from Friday’s ￰8￱ a note, Citi analyst Christopher Danely wrote : “Micron will report F4Q25 results on September 23 after market ￰9￱ expect the company to report in-line results and guide well above consensus driven by higher DRAM and NAND sales and ￰10￱ believe the continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market (55% of Micron revenue).” Micron’s gains were not ￰11￱ rally was part of a wider $14 trillion rise across equities since ￰12￱ its extreme RSI shows it may be peaking, at least for ￰13￱ holding these gains might book profits ahead of the earnings report, adding more ￰14￱ surges on Musk compensation plan amid Fed anticipation Tesla, which has climbed 18% this month, extended its rally this week after the company’s board proposed a nearly $1 trillion pay package for CEO Elon ￰15￱ stock had already been on the rise, but the pay plan lit a fire under ￰16￱ its RSI now at 75.6, Tesla is officially in overbought ￰17￱ broader market’s rally hasn’t happened in a ￰18￱ are betting that the Fed, after pausing in December, will resume rate ￰19￱ next move is widely expected to happen Wednesday, and traders are pricing in at least 150 basis points of cuts over the next year.

Historically, the S&P 500 has gained 15% on average in the year after rate cuts resume following a pause of six months or longer, based on data going back to the ￰20￱ comparison, it averages a 12% gain after the first cut of a typical easing ￰21￱ the big question is whether the Fed is already too ￰22￱ has reached its highest level since 2021, and while growth still looks decent, those warning signs have started to pile ￰23￱ traders are pivoting to smaller companies, hoping they’ll benefit from lower borrowing ￰24￱ are sticking with megacap names like Tesla and Micron that have powered the market’s ￰25￱ are watching closely for the Fed’s statement on Wednesday, followed by Chair Jerome Powell’s press ￰26￱ eyes will be on the dot plot, which maps out the Fed’s interest rate ￰27￱ Russell 2000, a small-cap focused index, is up 7.5% this year, while the S&P 500 has gained nearly 12%.

If interest rates drop fast, the gap between those two could shrink, but if the Fed drags its feet on cutting or the economy slows down harder, all bets are ￰28￱ Difference Wire : the secret tool crypto projects use to get guaranteed media coverage