- Tesla crashes over report of reduced output plan
- Chinese ADRs rise as optimism reopens
- Indices mixed: Dow up 0.40%, S&P down 0.11%, Nasdaq down 0.80%
December 27 (Reuters) – While the tech-heavy Nasdaq came under pressure after drops in some mega-capital growth stocks and Tesla on Tuesday, optimism about the economic recovery in China helped limit losses after China further loosened COVID-19 restrictions. .
Tesla Inc. (TSLA.O) It fell 8.1% to its lowest level in more than two years after Reuters reported that the electric vehicle maker plans to run the electric vehicle maker. reduced production schedule In Shanghai factory until January. The stock has lost more than two-thirds of its value this year.
Megacap growth shares Apple Inc. (AAPL.O)Alphabet Inc. (GOOGL.O) and Amazon.com Inc. (AMZN.O) US Treasury yields rose, slipping between 1% and 1.5%.
The declines made the consumer delight (.SPLRCD) and Technology (.SPLRCT) worst performers among the major S&P 500 (.SPX) industry indices.
However, sectors closely linked to the economy such as industry (.SPLRCI)materials (.SPLRCM) and energy (.SPNY)advanced, helping Dow Jones (.DJI) generates profit.
“What you’re seeing is a battle between investors who are selling end-of-year tax sales and those who believe normal inflows in January will lead to a better market,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Vernon. Jersey.
Meckler also pointed to thin trading volumes playing a role in market volatility.
Growth stocks have been under pressure this year due to a surge in US Treasury yields after the Federal Reserve launched an aggressive rate-raising campaign to curb the rise in inflation, as investors gravitate towards higher dividend-paying value stocks like energy.
S&P 500 growth index (.IGX) It’s down 30% this year compared to a 7% drop for the value index (.IVX).
US-traded shares of Chinese companies such as JD.Com Inc, Alibaba Group Holding Ltd, and Pinduoduo Inc. (PDD.O) It rose between 2% and 3.8% after China aforementioned As of January 1, it would remove the requirement for incoming passengers to enter quarantine. 8.
investors hopes For a so-called “Santa rally” at the end of a largely disappointing month for US stocks.
S&P 500 (.SPX) and Nasdaq (.IXIC) They’ve suffered losses of around 5.7% and 9% so far in December and are on track to post their biggest annual loss since 2008 as monetary tightening fueled fears that the economy would plunge into recession.
The economic data so far have given little hope. Inflation fell furtherbut not enough to deter the US central bank from raising interest rates higher next year.
Money markets are pricing the Fed’s 25 basis point rate hike at 59% at its February meeting and expect rates to peak at 4.98% in May. .
11:52 pm ET, Dow Jones Industrial Average (.DJI) The S&P 500 was up 133.48 points, or 0.40%, to 33,337.41. (.SPX) It fell 4.22 points, or 0.11%, to 3,840.60, and the Nasdaq Composite (.IXIC) It was 10,413.97, down 83.89 points, or 0.80%.
Southwest Airlines Inc. (LUV.N) then fell 4.9% cancel thousands of flightsIt puts more pressure on the S&P 500.
Issues fell 1.01 to 1 on the NYSE and 1.43 to 1 on the Nasdaq, outpacing advancers.
The S&P index posted five new 52-week highs and three new lows, while the Nasdaq posted 61 new highs and 311 new lows.
News from Bengaluru by Amruta Khandekar and Ankika Biswas; Fiction by Vinay Dwivedi and Sriraj Kalluvila
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