📉 Nasdaq Falls into Correction Territory
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Tuesday Close) 3,331.84 −95.12 (2.78%)
NASDAQ (Tuesday Close) 10,847.69 −465.44 (4.11%)
FTSE 100 (5 PM IST) 5969.65 +39.35 (+0.66%)
NIFTY 50 (Today's Close) 11,278.00 −39.35 (-0.35%)
USDINR (5 PM IST) 73.60 (1 Year -0.20%)
Nasdaq falls into correction territory
The US stock market continued its downward spiral as investors sought refuge in safe assets and sold tech stocks.
What Happened? The Nasdaq plunged more than 4% Tuesday, nearing a symbolic 10% correction from the record highs of last month. Major pandemic winners such as Tesla, Zoom, and Apple were down much more. The US dollar and T-bills gained.
Tesla, which was already reeling from not being included in the S&P 500, skidded 21% after GM announced a $2B strategic stake in rival Nikola Motors. This comes on top of an expanded partnership GM had announced with Honda last week, reinforcing GM’s commitment to EVs. Nikola rose over 40% on the news and GM rose almost 8%. In spite of Tuesday’s drop, Tesla is up nearly 4X for the year.
The avalanche of sell orders in the stock market coincided with the unwinding of speculative bets in the oil markets. As a reminder of the broader slump and depressed demand in key sectors such as travel and aviation, Saudi Arabia slashed its selling price for crude to the US and Asia. Add to this, the realization that the trade war is nowhere close to being resolved. Case in point, President Trump’s plans to end reliance on China, and threats of imposing sanctions against companies that create jobs outside of the US. That was enough for investors to find more reasons to head for the exits.
Amid the gloom, Disney spread some cheer and was up over 1.5% after a “Buy” rating from Deutsche Bank.
Spot gold was down 1.3%, whereas oil prices fell 7% to $36.76 per barrel.
Market Reaction: S&P 500 was down 2.78%, DJIA dropped 2.25%, and the tech-heavy Nasdaq fell 4.11%.
Newsworthy 📰
Playing Safe: AstraZeneca pauses coronavirus vaccine trial, rollout doubts dent shares (AZN +2.11%)
The Great Fall: Tesla loses more than combined GM, Ford market value (TSLA -21.06%)
Pay Up: Apple seeks damages from 'Fortnite' creator in App Store dispute (AAPL -6.73%)
Winvesta in Press 📰
Investing in the time of COVID-19 has laid bare the challenges of having access to limited investment opportunities. Swastik Nigam, Founder and CEO, Winvesta, says, “Home-bias has clearly stung investors in India."
Later Today 🕒
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Fun Fact of The Day 🌞
The 100 folds in a chef's hat represent 100 ways to cook an egg.
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