An hour and a half before the stock market opened, the mood and expectations were positive in the US stock market as the three core indices were expected to rise 0.5-0.8%. At the same time, several tech stocks were expected to receive a good boost, with Tesla and Amazon’s stock prices both expected to rise 3.5%. Netflix’s price hike was supposed to reach eight percent.
But as the stock market opens, there has been news from the electric car maker about weaker demand in China. This leads Tesla to reduce the price of the Model 3 and Model Y by up to 9%, writes the news agency Reuters among others.
With that, the stock market will dump Tesla stock instead. In pre-trade it was trading at $ 207 and $ 208, which indicates a price drop of more than three percent from Friday’s closing price. At the opening, the stock price fell as low as $ 204 as revenue seemed to struggle to find a starting point.
During the first hour of the Nasdaq’s opening, Tesla’s stock price was at a low of $ 198.59. It is the lowest level since May last year.
Central indices opened on Monday as follows:
- The high-tech Nasdaq opened flat.
- The Dow Jones Industrial Index rose 1.25%.
- The broad S&P 500 index increased by 0.84%.
All major US stock market indices rose more than that two percent Fridayafter a turbulent week.
Challenging the Asian stock exchanges
The Hong Kong Stock Exchange’s Hang Seng Index hit a low on Monday morning level since 2009 and ended with a drop of more than six percent. The reason is investor skepticism about the remaining macro figures sent Monday morning.
The fact that President Xi Jinping is signaling a greater concentration of power has caused a sharp decline in US-listed stocks, which mirror Chinese mutual funds and company shares. The Alibaba e-commerce store fell nearly 12%, as did the electric car maker Nio.
However, European stock exchanges, such as Frankfurt, London, and Paris, weren’t hit too hard by the stock market turmoil in China and surged throughout Monday.
The London stock market seemed to appreciate that the Conservative Party had reached an agreement. The main FTSE 100 index was around 0.6% when news broke that Rishi Sunak will now become the new prime minister.
(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with prior written permission or as permitted by law. For additional terms look at her.
