Tesla shares dropped and the Nasdaq climbed slightly as fears of weak market growth continued

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Tesla shares dropped and the Nasdaq climbed slightly as fears of weak market growth continued.

Tesla’s announcement of its price cut on both the Model S and Model X SUV caused a drop in its stock market price. Despite the intense competition, Tesla is once again moving toward a price cut at the top end. The company announced lately that it will drop its Models by 5% to $89.99 and its second Model X SUV luxury vehicle by 4% to $109.99. The company’s CEO said last week that the demand for Tesla’s models is increasing despite the unhealthy market condition.

On the other hand, Tesla shares dropped by 2.19% at 13:30 p.m. ET, making it the highest drop in company shares this month.

For individual stocks, most tech stocks climbed higher at the same time, boosting Nasdaq gains for today’s session. Apple inc shares were up by 2,7%, meta shares rose by 0,73% and Alphabet inc jumped by 1,71%.

Moving to Wall Street, the Nasdaq climbed lower by 0.45% amid fears of a weak market growth outlook. Inflationary pressure and hot retail sales reports put some pressure on the remaining features. The S&P 500 benchmark rose slightly by 0,39%, while the Dow futures went up by 0,,29%.

Over the course of the past few days, it seems, at first glance, that the main Wall Street indexes are getting healthy. Yet, the U.S. stock market remains fragile as a result of high inflation and aggressive monetary policy.

Unlike last week’s market indicator for the economy, the S&P VIX was up by 1,62%. The increase in market volatility indexes can only be explained by the future weight of higher interest rate hikes on the market’s evaluation. On one hand, the labor market has been strengthened by the increase in U.S. payrolls and wages. On the other hand, retail sales, the housing market, and hot inflation reports cripple the stock market to some degree.

Experts believe that investors might be facing a new dilemma in the future: higher interest rates might pressure corporate earnings and profits. For example, retail sales declined sharply in the last quarter, and other reports indicate that a quarter of retail stores declared bankruptcy.

On top of that, the purchasing power of consumers is decreasing day by day as a result of higher conspired product prices and the tech industry’s recent layoffs.

Almost all tech companies were forced to cut their labor force numbers by a high percentage over the past few months and repeatedly as well.

Meanwhile, the dollar index has lost its attractiveness due to the fast rebound in the European euro and the Japanese yen. The U.S. dollar index declined by 0.22 percent and remains close to the 104 price level.

Experts forecast that the U.S. dollar might go through a sharp decline in its market value soon.

Taken together, the market futures outlook remains bullish, yet the forthcoming data, including payrolls and inflation, will give a clearer idea of the future market condition.

Written by Editor

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