Markets on Edge: Jitters on Wall Street and Record Gold Prices
Investors show signs of reluctance ahead of the Federal Reserve's decision.
Street smarts take a hit as jitters pre-Fed meeting send stock prices tumbling. The tech industry hardest hit. Russian-Ukraine conflict adds a dash of chaos.
Digging in deep ahead of the Fed's decision on interest rates, Wall Street investors went skittish today, with the Dow plunging 0.6% to 41,581 points. The S&P 500 took a deeper dive of over 1% to 5,614 points. Tech titan Nasdaq wasn't far behind, plummeting 1.7% to 17,504 points.
Experts reckon that the Fed might maintain the status quo at its two-day meeting kicking off today. Few Fed bigwigs have warned against rash decisions, emphasizing the need for data on tariff repercussions. tariff tensions leading to trade disputes with major trading partners and swift retaliations could lead to economic recession and stoked inflation - potential cues for rate hikes or cuts, respectively.
Tasked with keeping inflation under control at 2%, the Fed last left the federal funds rate at 4.25% - 4.50%. A silver lining came as companies bumped up manufacturing ahead of the expected.
Ukraine-Russia troubles were another hot topic on Wall Street. Following Trump-Putin discussions, the pair agreed to a 30-day ceasefire on mutually attacking energy infrastructure. While Ukraine agreed to halt attacks on energy supplies, a comprehensive truce remains elusive. Increased gold demand marked uncertainty as the precious metal surged to $3,038.26 per ounce.
Tesla Slides as Optimism Wanes
Easing coal regulations in the US propelled US mining stocks. Peabody and Core Natural shares jumped 6.2% and 4.6%, respectively. The EPA is set to scrap rules limiting soot and emissions from the US fossil fuel sector.
Among losers, Tesla shone brightest, slipping 5.3%. RBC’s revised price target echoed fears of Tesla's dwindling market share in Asia and Europe. JP Morgan also confirmed S&P's revised long-term production forecasts for Tesla due to ongoing adverse consumer reactions and unsavory press. Tesla's stock price has nosedived by approximately 45% since the year's start.
Google parent Alphabet's shares took a 2.2% hit, with the internet titan acquiring cybersecurity firm Wiz for $32 billion in cash. Gold Fields shares spiked 3.2%, while Barrick Gold shares rose 0.8% as investors favored the safe-haven metal.
Sarepta Therapeutics shares tanked 27% following the death of a gene therapy patient. The company attributed the death to liver failure.
For more on today's market action, click here.
Source: ntv.de, ino/rts
- Stock behaviour
- Interest rate
- Economic conditions
- Financial news
Factors Influencing Tesla's Market Share
China: Ongoing consumer polarization could impact the demand for Tesla vehicles.
Europe: Growing competition in the EV market coupled with consumer sentiment and economic conditions pose a threat to Tesla's market presence in Europe.
General Challenges:
- Polarization: Tesla has become increasingly divisive, which may deter potential buyers.
- Competition: Rapidly expanding electric vehicle market and increased competition could impact Tesla’s market share.
- Economic Factors: Economic uncertainties and trade risks could impact the demand for luxury electric vehicles, affecting Tesla's sales.
- In the Eurozone, the EC's employment policy might need expedited attention as the economic uncertainties and trade risks could impact the demand for luxury electric vehicles, affecting Tesla's sales.
- On Tuesday, analysts at RBC warned about potential profit losses for Tesla due to dwindling market shares in Asia and Europe, causing stocks like Core Natural and Peabody to rise while Tesla slid by 5.3%.
- As investors continue to seek safe-haven investments during times of economic instability, stock prices of gold miners such as Gold Fields and Barrick Gold are expected to increase, while Tesla's shares might continue to decline.
