Nasdaq unexpectedly closes lower | The time

16 september 2020

22:27

Wall Street unexpectedly went into the red. General Motors scored again with news about electric cars. FedEx flew higher thanks to e-commerce.

The US stock markets initially went higher in the run-up to it interest rate decision of the US central bank (Fed). The central bank eventually left interest rates unchanged, but hinted at extremely low interest rates until 2023. During the press conference given by Fed Chairman Jerome Powell, tech stocks in particular plunged into the red, closing the Nasdaq more than one percent lower.

Powell stressed that several sectors will continue to be badly hit until there is a vaccine. That warning may have made investors a bit nervous.

De Dow Jones

managed to keep the herb dry and rose by 0.1 percent.

General Motors

General Motors (GM)

comes with a new weapon against the electric car king Tesla. The car manufacturer presented a series of five interchangeable drive shafts in combination with three electric motors. The powertrains fit many existing undercarriages such as pick-up trucks and SUVs.


General Motors’ new weapon allows consumers to install an electric motor in their non-electric vehicle.

This means that consumers can have the electric motor installed in their non-electric car. With this, the automaker tries to reduce Tesla’s big lead. Earlier this year, GM pledged to invest up to $ 20 billion in its electric car division. By 2025, that division should be selling 1 million cars per year in the US and China.

The stock won 0.7 percent.

FedEx

FedEx stock flew 5.8 percent higher after stronger-than-expected first-quarter figures for the broken fiscal year. In the three months to August, the parcel deliverer saw his profit increase 60 percent to $ 4.87 a share. That is a lot higher than the analyst expectation of $ 2.69 per share. Sales grew by 13.5 percent to $ 19 billion.

An important driver of the turnover was the enormous increase in e-commerce. The outbreak of the corona virus has given e-commerce an immense boost. During the quarantine, more and more people discovered the convenience of online shopping, which means that the boost also continues after the relaxation of the quarantine measures. Furthermore, FedEx refers to lower fuel costs, which improved margins.

©AFP
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