Tesla papers lose more than a fifth of their value, while competitor Nikola wins significantly on Wall Street. The big tech companies like Amazon, Apple, Facebook and Alphabet are also losing. A proposal by US President Trump, however, leaves investors cold.
Another sell-off in tech stocks has hit Wall Street. One reason for this is the news that the Japanese private equity firm Softbank had bet billions on US technology stocks on the futures market to temporarily invest money from the sale of shares, said Ken Peng, chief investment strategist for Asia at Citibank. Anyone who has secured purchase options in the past few months is doing very well so far. "But that will become a problem later when these positions are dissolved."
The U.S. Standard Values Index Dow Jones closed 2.3 percent lower to 27,500 points. The technology-heavy one Nasdaq was down 4.1 percent to 10,847 points. The broad one S&P 500 lost 2.8 percent to 3,331 points.
The big tech companies like Amazon, Apple, Facebook and the Google parent Alphabet. Their shares, which had driven the bull market in recent months, slipped by up to almost seven percent. But it is premature to conjure up the end of the tech rally, said stock trader Dennis Dick from brokerage firm Bright Trading. "It's still a healthy correction." For Peter Cardillo, chief economist at Spartan, a trend reversal is not in sight. Because the mainspring of the stock market rally is the ultra-loose monetary policy of the US Federal Reserve (Fed), which makes other investments unattractive. "There is practically no other place than stocks to invest your money."
Another negative factor for the stock market is the ban on imports of Chinese cotton from the troubled province of Xinjiang, said analyst Pierre Veyret from the brokerage firm ActivTrades. At the same time, US President Donald Trump brought up a decoupling of the world's two largest economies again. But investors tend to dismiss this as a campaign noise, said investment strategist Chris Bailey from investment advisor Raymond James.
On the stock market Tesla's papers collapsed by more than 21 percentafter S&P Dow Jones denied the electric car maker its widely anticipated inclusion in the S&P 500. The index provider gave preference to companies with a significantly lower market value but more frequent quarterly profits. The Nikola papers, on the other hand, jumped more than 40 percent.
The automaker General Motors (GM) joins the specialist for electric pickups, whose model "Badger" is to compete with the "Cybertruck" from Tesla. Through the alliance, Nikola could save around five billion dollars in the coming years, including in purchasing, calculated analyst Jeffrey Osborne from the asset manager Cowen. GM titles rose almost eight percent.
The Oil prices plummeted to their lowest level since June from. The US variety WTI fell more sharply than the European reference variety Brent. Dealers spoke of the need to catch up. Brent had already fallen earlier in the week after Saudi oil giant Saudi Aramco cut prices for several buyers. In particular, demand from China has been falling since mid-July, while the oil cartel Opec is ramping up production, it said in the trade. The very firm dollar also weighed on. In addition, US gasoline consumption was well below the previous year's level. The price of a barrel of WTI fell 7.6 percent to $ 36.76, and Brent fell 5.3 percent to $ 39.78.
The "safe havens" Gold and US bonds were in demand. Despite the strength of the dollar, the price of the troy ounce of gold rose by 0.2 percent to 1,934 dollars, the highest level in about a week. The heated conflict between China and the USA supports the precious metal, it said.
. (tagsToTranslate) economy (t) Wall Street (t) Dow Jones (t) stock trading