The afternoon was stormy on Wall Street. Tesla has recovered from some of the sharp fall in early trade.
An hour and a half into the trading day, the situation is completely different from just an hour ago. Nasdaq-heavy technology fell by nearly four percent in the worst case, but fell by 17 “just” a little more than one percent.
Electric car maker Tesla focused on Tuesday after the company began the week with a drop of more than eight percent. On the worst Tuesday, the stock fell more than twelve percent, but now the picture is completely different.
After an hour and a half of trading, Tesla shares are down 2.38% to 697.53 points.
In less than a month, the stock fell 21 percent from its $ 883.09 high on January 26.
As of this writing, all the momentum that the company has had this year has evaporated.
This is the situation in the leading indices:
- The S&P 500 is down 0.32 percent
- Nasdaq is down 1.08 percent
- Dow Jones drops 20%
Fears of higher inflation have grown among investors in recent weeks after interest rates on government bonds rose while Congress was working to get past Joe Biden’s Corona crisis package, CNBC writes.
According to the website, investors fear that a price jump as a result of the crisis package may mean that the central bank will have to raise interest rates.
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Analyst: Tesla connected directly to Bitcoin
Earlier this month, Tesla announced that it had acquired Bitcoin for $ 1.5 billion in January. This led to a crazy rise in crypto.
After yesterday’s hard fall, Woodbush analyst Daniel Ives now warns CNBC.
Musk (CEO Elon Musk’s editorial note) is now linked to the Bitcoin story in the eyes of Wall Street and although Tesla on paper earned a billion a month on digital gold ownership, it comes with increased risk, as we will see this week, Ives writes in an email to CNBC .
He also warned that Tesla’s bitcoin acquisitions are jeopardizing the success of investors’ interest in producing electric cars in the short term.
The cost of one bitcoin today is $ 46,700, down 11.5 percent from last year
The decline in Tesla shares in recent days has contributed to Amazon founder Jeff Bezos now being ranked as the richest man in the world, according to the Bloomberg Billionaires Index. Elon Musk has held the position continuously since the beginning of January.
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Mixed in technology stocks
Otherwise, on Wall Street, the trading day is marked by the fall of technology. Apple fell by a maximum of more than five percent, but even here the fall was significantly subdued throughout the day.
This is how it goes among the most prominent technology companies:
- Apple is down 1.71 percent
- Amazon is down 0.55 percent
- Facebook costs 1.50 percent
- Netflix rose 1.57 percent
- Alphabet (Google) is down 0.08 percent
Meanwhile, Federal Reserve Chairman Jerome Powell is speaking during a Senate debate on Tuesday. Typically, this is an event that does not receive much attention, but due to higher interest rates on government bonds and a storm of inflation, Powell’s possible statements may affect markets.