After 45 minutes of trading, the Dow Jones index is 0.1% lower and the Nasdaq index has lost 0.9%. The further rise in bond yields, to 1.42% for 10-year government bonds, weighs on the mood.
Investors took heart on Tuesday from Fed chief Jerome Powell’s statement during a hearing before Congress that he does not fear very high or prolonged inflation. The Fed will therefore continue its stimulus policy, which ensures very low interest rates.
Tesla’s price was 8% lower on Tuesday, after which it rebounded to a 2% lower close. That still means that the maker of electric cars has surrendered about 20% in just a month. This is not so much for a business economic reason as that the valuation had risen much too high according to many. However, investors are now seeing an interesting entry point again, based on the plus of 1.2%.
Johnson & Johnson is up 0.5%. The US drug watchdog FDA has announced that his coronavaccin is safe, which will likely lead to approval for market launch in the US on Friday.
MicroStrategy wins 8%. The software company has taken advantage of the recent drop in the price of bitcoin to buy an additional $ 1 billion of these digital currencies.
Uber is down 3.7% on news from rival Didi Chuxing. The Chinese taxi app reportedly also wants to enter the Western European market.
Electric car maker Fisker climbs 16%. This American start-up will develop a car together with the Taiwanese electronics assembly company Foxconn. It should be on the market in 2023.