On the first trading day of the week, the New York Stock Exchanges open lower.
This is what the opening looks like on Monday:
- The Dow Jones Industrial Average fell 0.7 percent
- The technology-dominated Nasdaq fell 0.6 percent
- The broad S&P 500 index fell 0.7 percent
waiting in anticipation
The US central bank, the Federal Reserve (Fed), will not hold its next interest rate meeting until next week. However, investors are anxiously awaiting what is likely to be a cut in interest rate increases, after a triple jump since June.
At the same time, macroeconomic figures showed that the economy has not yet cooled down. The labor market is tight and inflation is high.
Bloomberg points to renewed inflation risks and more volatility in bonds.
The central bank governor said in a speech last week that there is “a long way to go to achieve price stability despite promising developments”.
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Rumors about Tesla production
Tesla stock fell from the start, and after a few minutes of trading it fell by 4.49%. This drop comes after rumors of questionable production prospects.
Bloomberg News reported with reference to sources that the American electric car manufacturer Tesla plans to cut production at its Shanghai plant, writes TDN Direkt. The sources said the decision was made based on an assessment of the Chinese market demand in the short term.
Still, the production cut is “misinformation,” Shanghai Securities News reports, referring to anonymous sources familiar with the company, Bloomberg writes.
Ascension in Asia
In Asia, the Hong Kong Stock Exchange rose sharply. In particular, technology stocks such as Alibaba saw a rally.
Signs of reopening in China are getting the credit for the Asian stock market rally. China has been marked by President Xi Jingping’s “zero Covid” strategy for nearly three years.
Major cities Beijing and Shenzhen will end rules on coronavirus testing for travel and public transportation, which in turn has boosted stock markets.
Morgan Stanley has overweighted Chinese stocks, in part because of prospects for more reopenings in the country, according to financial times.
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