Musk’s pessimism scares investors away

Musk’s pessimism scares investors away
Written by insideindyhomes

Dow Jones closes in the red
Musk’s pessimism scares investors away

With the US unemployment rate remaining low, the Fed could quickly push through fresh rate hikes. This assumption is clouding the mood on Wall Street. Tesla boss Musk also gave the stock marketers a stab with his statement on the economic forecast.

Strong jobs data dashed investors’ hopes of a slower rate pace in the US and weighed on Wall Street. In addition, skeptical economic statements by Tesla boss Elon Musk discouraged investors. Of the Dow Jones lost 1.05 percent up 32,899.70 Points. The broader one S&P 500 lost 1.63 percent to 4108.54 points. The index of the technology exchange Nasdaq fell by 2.47 percent 12,012.73 Points.

Tesla 656.20

US companies created 390,000 new jobs, economists polled by Reuters had only expected 325,000. According to experts, the US Federal Reserve should feel confirmed in its interest rate hike cycle and not take a break in September, as some investors had hoped. “(This report) gives the Fed permission to continue raising interest rates because the job market is strong. You can worry more about inflationary pressures and less about the job market,” said Anthony Saglimbene, global market strategist at Ameriprise Financial.

The dollar received a tailwind from the interest rate outlook. Of the dollar index, which measures the currency against other major currencies, gained 0.3 percent to 102.16 points. Some analysts continue to see the dollar at an advantage in the currency markets. The Fed’s tightening cycle is based, they say, on a more resilient growth story than in Europe, particularly after Russia’s oil embargo, which could hurt the eurozone economy.

Oil price continues to rise

The variety was quoted on the crude oil market Brent from the North Sea was up 1.36 percent at $121.35 a barrel (159 liters) after the export cartel Opec+ announced a surprisingly significant increase in production by 648,000 barrels a day. According to stockbrokers, however, this is not enough to counteract the shortage of supply on the world markets. After the end of most corona restrictions in China, demand for the raw material will increase rapidly there.

Twitter 37.47

Tesla-Shares fell more than 9 percent. Musk wants to reduce the workforce at the electric car manufacturer by around ten percent, he has a “super bad feeling” about economic development. Tesla is trying to stay ahead of slower deliveries this year and protect margins from an economic slowdown, said Dan Ives, equity researcher at Wedbush Securities. The planned takeover of the short message service Twitter by Musk was again a topic in the trading rooms. After the expiry of a waiting period under control law for the planned $44 billion takeover Twitter-Paper half a percent in the plus.

Appleshares lost about 3.9 percent. According to insiders, the EU countries and MEPs are about to agree on uniform charging connections for smartphones, tablets and headphones, which runs counter to the interests of the iPhone manufacturer. In addition, a negative analyst comment weighed on the papers. In anticipation of a bidding contest for Kohl’s Investors, on the other hand, got into the US department store chain. Shares rose about 0.7 percent to $41.47. According to the Wall Street Journal, financial investor Sycamore is offering about $55 per Kohl’s share and private equity firm Franchise Group is offering about $60. A takeover would have a total volume of seven to eight billion dollars.


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