Stocks Plummet Again: What Wall Street’s Saying

Christel Deskins

Tech stocks kept cratering Tuesday and there were two main concerns for the rest of the market.  The S&P 500 fell 2.78%, pulled down harshly by the technology components of the Nasdaq 100, which fell 4.11%. As expectations for a continued speedy economic recovery remain highly skeptical, the 10-Year Treasury […]

Tech stocks kept cratering Tuesday and there were two main concerns for the rest of the market. 

The S&P 500 fell 2.78%, pulled down harshly by the technology components of the Nasdaq 100, which fell 4.11%. As expectations for a continued speedy economic recovery remain highly skeptical, the 10-Year Treasury yield slipped to 0.68%. The price of crude oil fell 7.24% to $36.89 a barrel. 

For tech, valuations are still stretched. Apple  (AAPL) – Get Report fell 6.7%, while Tesla  (TSLA) – Get Report fell 21%. Not only was growth tech selling off as investors reassessed valuations in the face of what could have potentially been a massive pull-forward of demand for at-home services like streaming, cloud and e-commerce, but Tesla had two additional headwinds. 

Tesla will not be added to the S&P 500, which means indexed funds won’t buy the shares. Also, electric vehicle competitor Nikola  (NKLA) – Get Report completed a deal with General Motors  (GM) – Get Report which will give Nikola access to its EV technology in exchange for a small equity stake. This is a “game changer” for Nikola, according to a note from Wedbush Securities’ analyst Dan Ives, and a headwind to Tesla. Nikola rose 40%. 

Source Article

Next Post

Why You Might Be Interested In Cleanaway Waste Management Limited (ASX:CWY) For Its Upcoming Dividend

Cleanaway Waste Management Limited (ASX:CWY) stock is about to trade ex-dividend in 4 days. This means that investors who purchase shares on or after the 11th of September will not receive the dividend, which will be paid on the 6th of October. Cleanaway Waste Management’s next dividend payment will be […]