Tesla, Huge Growth Stocks Push Nasdaq Lower; The Dow is rising

(Reuters) – The high-tech stock market, Nasdaq, came under pressure on Tuesday after declines in some huge growth stocks and Tesla Inc., while optimism about economic recovery in China after the country eased restrictions on the spread of the emerging Corona virus (Covid-19) helped limit the spread of the emerging corona virus (Covid-19). losses.

Tesla Inc (TSLA.O) It fell 8.1%, its lowest in more than two years, after Reuters reported that the electric car maker plans to run a reduced production schedule at its Shanghai plant through January. The stock has lost more than two-thirds of its value this year.

Megacap Apple Inc. stock growth (AAPL.O)Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O) It fell between 1% and 1.5% as US Treasury yields rose.

The declines made the consumer judgmental (.SPLRCD) technology (.SPLRCT) The worst performing S&P 500 company (.SPX) Sector indexes.

However, sectors are closely related to the economy, such as industries (.SPLRCI)Materials (.SPLRCM) and energy (.SPNY)Developed, helping the Dow Jones index (.DJI) to collect gains.

“What you’re seeing is a battle between investors who are doing an end-of-the-year tax sell-off and investors who think normal inflows in January will lead to a better market,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Vernon. jersey.

Meckler also pointed out the weak trading volumes that play a role in the market’s volatility.

Growth stocks have been under pressure this year from a rally in US Treasury yields after the Federal Reserve embarked on a campaign of raising interest rates to tame rising inflation, with investors turning to high-value stocks for dividend payments such as energy.

S&P 500 growth index (.IGX) It’s down 30% this year, compared to a 7% drop for the value index (.IVX).

Shares of US-listed Chinese companies such as JD.Com Inc, Alibaba Group Holding Ltd, and Pinduoduo Inc (PDD.O) It jumped between 2% and 3.8% after China said it would stop requiring incoming travelers to enter quarantine from January 8.

Investors are hoping for a so-called “Santa’s rally” at the end of what has been a hugely disappointing month for US stocks.

S&P 500 index (.SPX) and NASDAQ (nineteenth) It has lost around 5.7% and 9% so far in December and is on track for its biggest annual loss since 2008 as monetary policy tightening sparked fears the economy could turn into recession.

Economic data so far has offered little hope. Inflation has eased further, but not enough to dissuade the US central bank from pushing interest rates higher next year.

Money markets are pricing in 59% odds of a 25 basis point rate hike at the Fed’s February meeting, and expect rates to peak at 4.98% in May. .

At 11:52 a.m. ET, the Dow Jones Industrial Average (.DJI) up 133.48 points, or 0.40%, at 33,337.41, the Standard & Poor’s 500 (.SPX) The index fell 4.22 points, or 0.11%, to 3,840.60 points, and the Nasdaq Composite Index (nineteenth) It was down 83.89 points, or 0.80%, to 10,413.97 points.

Southwest Airlines (LUV.N) By 4.9% after thousands of flights were canceled, adding pressure to the Standard & Poor’s 500.

Declining issues outnumbered advancers by 1.01 to 1 on the New York Stock Exchange and 1.43 to 1 on the Nasdaq.

The S&P posted five new highs in 52 weeks and three new lows, while the Nasdaq recorded 61 new highs and 311 new lows.

Additional reporting by Amruta Khandekar and Anika Biswas in Bengaluru; Editing by Vinay Dwivedi and Sriraj Kaluvella

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