Elon Musk complains that the Tesla share price is too high and the market answers it promptly. Many other papers also fall. On the one hand, this has to do with profit-taking, on the other hand, with Donald Trump’s recent statements regarding China.
Fears of a flare-up of the US-China conflict spoiled investors’ appetite for stocks on Friday. The leading index Dow lost 2.55 percent to 23,723.69 points. In addition, the quarterly figures of heavyweights such as Amazon, Chevron and Exxon Mobil were not well received by investors. The Dow Jones Index suffered a small loss during the week.
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US President Donald Trump says he has evidence that the corona pandemic may have originated in a Chinese research laboratory. When asked by a journalist if he had seen information that would give him security in this regard, Trump said on Thursday evening: “Yes, I have.” Bloomberg news agency, citing a person familiar with the matter, reported that Trump was considering banning a government pension fund from investing in Chinese stocks.
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The market breadth S&P 500 declined 2.81 percent to 2,830.71 points. The Nasdaq 100 lost 3.14 percent to 8718.18 points. Analyst Edward Moya from broker Oanda also suspected profit taking behind these losses, “especially for heavyweights like Apple and Amazon”.
“The mood for stocks is back on track,” wrote CMC analyst David Madden, referring to Trump’s statement. With 30 million unemployed in the United States as a result of the corona crisis, the US president is trying to blame China for the pandemic. A new trade dispute between the two countries may now threaten.
Investors react to Musk tweet
Amazon shares fell 7.6 percent after climbing to a record high the previous day. The Corona crisis has given the online retailer a lively flow of customers, but it has also led to higher spending – for example due to a recruitment campaign due to the rush of customers. The group now warned of special costs. Chevron papers declined 2.8 percent. The US oil company is cutting investments again in the wake of the corona crisis and falling crude oil prices. The share certificates of the industry colleague ExxonMobil even bucked by 7.2 percent. The slump in oil prices had caused the company to suffer a huge loss in the first quarter.
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Apple shares declined by 1.6 percent in quarterly terms. Analysts have confirmed that the iPhone manufacturer has come through the corona crisis well so far. However, the share price had already risen by almost 40 percent from the crash low in mid-March. Shares of Tesla lost more than ten percent. The price pressure was triggered by a tweet from the boss Elon Musk, for whom the share price seemed too high. From the crash low on March 18 at just over $ 350 to the high from the previous day, they shot up almost 150 percent.
At the end of the leading Dow index, the shares of the chemical company were found Dow Inc with a loss of 7.5 percent again. Both Citigroup and Bank Credit Suisse had deleted the buy recommendations for the stocks. The credit card giant Visa had increased profits and revenues significantly in the most recent business quarter, but warned that the next quarters could be difficult due to the corona pandemic. The share price declined by 1.8 percent.
At the US bond market there was little movement, trend-setting ten-year government bonds rose by 4/32 points to 108 08/32 points. They paid 0.63 percent. The Euro failed to hold gains on the US dollar and was trading at $ 1.0977 at the close on Wall Street. The European Central Bank last set the reference rate at 1.0876 on Thursday. The dollar had thus cost 0.9195 euros.
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