Economy

Tesla crashed hard on dark red Wall Street | Financial

The Dow Jones index closed with a minus of 2.3 percent at 27,500.89 points. The broad S&P 500 fell 2.8 percent to 3,331.84 points and the Nasdaq technology gauge fell 4.1 percent to 10,847.69 points. The tech gauge has lost 11 percent in the space of a week.

Tesla fell 21 percent. The share of the manufacturer of electric cars is not included in the S&P 500, it turned out. Investors had speculated that Tesla could get a place in that gauge. The stock was also under pressure from the announcement of an alliance between General Motors (GM) and Nikola, which, like Tesla, is engaged in the development of electric vehicles.

GM

GM announced that it would invest $ 2 billion in Tesla’s industry peer in exchange for an 11 percent stake. GM and Nikola are also entering into a strategic partnership. GM gained nearly 8 percent. Nikola experienced a price jump of more than 40 percent.

In addition, companies such as chip manufacturer Nvidia, video streaming service Netflix and the maker of teleconference software Zoom Video Communications took a step back with price falls of up to 5.6 percent. There are concerns in the market that valuations in the United States tech sector have spiked too fast recently. Rising tensions between China and the US are also detrimental to sentiment.

Boeing

Boeing lost just under 6 percent after its monthly update on sales. The aircraft maker has received its first order for the type 737 MAX this year. But on the other hand, the number of cancellations of the contested model continues to rise. The 737 MAX has long been grounded for safety reasons.

Oil funds were also under pressure in the wake of lower oil prices. ExxonMobil and Chevron lost up to 3.6 percent. Oil service providers such as Schlumberger and Halliburton lost up to 7.4 percent.

A barrel of American oil became 7.3 percent cheaper at $ 36.67. Brent oil fell 5.1 percent in price to $ 39.87 a barrel. The euro was worth USD 1.1779, against USD 1.1786 at the close of the European stock exchanges.

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