Monday, March 8th, 2021
Sale of high-tech stocks
Tesla is losing $ 244 billion in value
Last year, Tesla became by far the most valuable automaker. In the new year, Elon Musk's company on Wall Street is going down at the same pace: the Nasdaq's tech values are also glowing deep red in the new trading week. The Dow Jones is shining green.
The stock market darling Tesla's value has shrunk significantly. Over the past month, the electric automaker's market cap fell more than $ 244 billion. On Monday, the share dropped for the fifth session in a row. The reason is, among other things, a wave of sales in high-tech stocks. Investors quickly drove the Tesla paper from $ 40 to $ 900, an analyst said. The crash happened just as hastily. The downside correction could take longer than other high-tech stocks as private investors sold more slowly than institutional investors.
Sales of other tech stocks also continued at the beginning of the week. The index of the technology exchange Nasdaq closed 2.9 percent in the red at 12,299 points. Of the Dow Jones Index the standard value, on the other hand, climbed 0.9 percent to 31,802 counters and has now reached a new record. The broader one S&P 500 gave up 0.5 percent and closed at 3821 points. The main impetus in traditional sectors was the prospect of faster economic growth and economic aid worth billions of euros.
"This is an ideal market for traders as certain sectors and individual stocks outperform the broader market," said Anthony Denier, managing director of the Webull trading platform. Above all, stocks are in demand that will benefit when the economy picks up again.
Tech values continue to slide
The materials sector was nearing a high, and industrial and financial stocks also hit record levels. Only the technology sector was in the red with stocks like Apple, Microsoft and Amazon and continued its downward slide of the past three weeks.
The background to this is the continuing fear of rising interest rates following the rise in US bond yields. Rising bond yields mean higher financing costs for states and companies. For weeks, this has hit technology stocks hard.
"There are tensions over inflationary pressures and the stimulus package is certainly adding to that pressure, which is reflected in the weakness of tech stocks and the Nasdaq," said Robert Pavlik, portfolio manager at financial services firm Dakota Wealth in New York.
US President Joe Biden's $ 1.9 trillion corona aid package was approved by the US Senate on Saturday. The House of Representatives is expected to approve the new economic stimulus package on Tuesday. US President Biden could then sign the law later this week. Investors hoped the huge stimulus package would spur economic recovery.
Gamestop trumps again
Banks gained around one percent as the yield on trend-setting ten-year US bonds was close to a 13-month high. Airlines climbed by up to seven percent.
The individual values jumped Walt Disney– Shares up six percent. California health officials set new rules that would allow Disneyland and other theme parks to reopen as early as early April.
Almost 42 percent shot GameStopShares up after US video game retailer announced it had entrusted shareholder Ryan Cohen to lead the transition to an e-commerce business.
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