January 27, 2023

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The decline continues on Wall Street - Tesla drops to its lowest level in two years - E24

The decline continues on Wall Street – Tesla drops to its lowest level in two years – E24

Interest rate and recession fears still feature Wall Street. On Friday night, Tesla is among the biggest losers, while Mother’s Day is back on Facebook.

Controversial: Tesla shares are down nearly 60 percent this year, and the recent controversy surrounding the Twitter purchase doesn’t seem to help company founder Elon Musk.
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Wall Street’s decline continues throughout Friday. Fear of stagnationFear of stagnationFear of falling and stagnation in the economy Higher interest rates affect the market, the dollar increases and oil prices fall. Earlier today, there was a broad decline in both Asia and Europe and the Oslo Stock Exchange.

On Friday, this looks like at closing time in the US:

  • The Dow Jones fell 0.9 percent
  • The S&P 500 fell 1.1 percent
  • Nasdaq is down 1.0 percent

Thursday was also a tough day for Wall Street, with all three major indexes down more than 2%.

Read on E24+

The “return” to the stock market: – It has become cheaper

Facebook return

The technology sector fell sharply on Thursday, but on Friday, Facebook owner Meta recovered much of the loss.

The stock is getting traction after flagship bank JP Morgan upgraded its Meta stock to Buy, According to CNBC.

Over the course of the evening, Meta was up 2.8 percent, but it’s still down more than 60 percent so far this year to a total market capitalization of just over $316 billion (more than NOK 3,000 billion).

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Tesla is among the losers

Fear of interest rates also affects others in the technology sector. The Nasdaq, which includes many of the world’s largest technology companies such as Apple, Meta and Netflix, fell more than three percent on Thursday and continued to drop one percent on Friday night.

Among the tech companies, it was giant Netflix that suffered the most on Thursday.

In addition to the demanding macroeconomic situation, Netflix had to pay back the advertisers’ revenue because it didn’t deliver enough views. The total value of the company fell within a few hours by over NOK 100 billion. On Friday, the stock rose marginally again.

On Friday, Tesla shares were among the biggest losers, dropping nearly five percent to a two-year low, while controversy over founder Elon Musk continued.

Over the year, Tesla’s value fell nearly 60 percent to $472 billion.

Fear of the interest rate

The US central bank raised interest rates again on Wednesday. After four alleged triple increases of 0.75 percentage points, the Fed raised the interest rate by 0.50 percentage points to a range of 4.25-4.50 percent. But what worries investors most is that interest rates have peaked at more than 5 per cent.

On Wednesday, Wall Street reacted hesitantly to raising interest rates, but on Thursday the impact of the interest rate rippled through the stock market.

Investors fear that a sharp rise in interest rates will lead to an economic slowdown.

Global stock exchanges and Wall Street rose cautiously recently after inflation figures for November showed that rate hikes had begun to slow price increases. On the other hand, Danske Bank chief economist Frank Gollum said Thursday’s decline was the result of investors getting too caught up, too soon.

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Central banks gave the market a reality check. They believe in a soft landing, but central banks are now using very clear language, Glum said Thursday evening.