Big Banks Pull Wall Street Down – Tesla Drops Five Percent After Cut Prices

Big Banks Pull Wall Street Down – Tesla Drops Five Percent After Cut Prices

The US stock market rose throughout the week, but fell again on the last trading day of the week. This is how it looks in the opening minutes:

  • The S&P 500 index, which consists of 500 of the largest publicly traded companies in the United States, fell 0.8 percent.
  • The Nasdaq Composite Index, which is dominated by technology companies, fell 0.8 percent
  • The Dow Jones Industrial Average, which consists of 30 handpicked and supposedly important stocks, fell 0.7 percent.

The broad S&P 500 is up about three percent so far this year, thanks in part to lower long-term government yields.

Banks back down

A number of major banks presented their latest quarter results before the market opened. For giant JPMorgan Chase, sales volume and earnings were better than expected, but the bank also made loss provisions of $2.3 billion in the quarter. It was more than expected up front, and up nearly 50 percent from the third quarter.

JPMorgan now expects a “moderate” recession in the US, where unemployment could rise to 4.9% in the fourth quarter, from today’s historically low level of 3.5% today.

– We still do not know the full impact of the headwinds of geopolitical tensions, including the war in Ukraine, the precarious situation in energy and food supplies, persistent inflation eroding purchasing power and raising interest rates, CEO Jamie Dimon said, according to CNBC.

Wells Fargo shares fell about four percent after earnings halved from the same quarter a year ago. Bank of America and Citigroup were virtually unchanged in the opening minutes.

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Tesla Dawn

After rising nearly 20 percent this week, Tesla shares have fallen about five percent since the start thereafter It significantly lowered the prices of its cars in both the United States and Europe. Tesla Tesla car manufacturers Ford and General Motors on the way.

Nordea investment manager Robert Ness called Tesla’s price cut dramatic.

– This may have consequences for competitors. There is a significant risk that other automakers will have to lower prices in order to compete against Tesla. Those in the same bracket don’t really have much choice, Nice says to Bergensavisen.

Tesla’s share has fallen nearly 70 percent since its peak last year, in part as a result of turmoil in the global economy as inflation soared and interest rates increased. December inflation figures came out on Thursday, which were exactly as expected at 6.5 percent.

The market is registering a prevailing possibility that the US Central Bank (Fed) will raise interest rates by 0.25 percentage point to 4.75 percent at its February interest rate meeting. The market believes that the interest rate will peak near five percent in the summer, but the market also believes that the Fed will cut the interest rate twice during the second half of the year. This is despite the fact that the Fed will raise the interest rate above five percent and keep it there. (Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

Dalila Awolowo

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