This Week on Wall Street #1 — September 26 — September 30
The bear market roars, Tesla AI day, and how the market is in extreme fear.
Fellow stock traders and investors! This is the first blog in the series of This Week on Wall Street, where you’ll get all of the stock market news for each week!
DOW drops 811 points this week
The Dow continues to drop, as it dropped 811 points this week, almost 3% down just in one week. The Dow is the lowest since November of 2020, while the Nasdaq is the lowest since July of 2020.
The reason for this is because the Treasury yields were pushed higher, and inflation climbed 0.6%, versus the expectation of 0.5%. This will confirm that the feds will continue hiking up interest rates and killing the housing markets until inflation is beat. This earning season will truly be the most important in a very long time, and if the earnings disappoint, the market will take another plunge.
Nike stock (NKE) plunges more than 10%
Nike stock plunges 12% as management announces that supply chain issues as well as increased demand will cause lower gross margins. Therefore, analysts cut price targets for Nike.
Tesla goes down due to delivery challenges
Tesla goes down, right before its AI day, it went down due to delivery challenges. It was expected to deliver 360,000 vehicle deliveries, however it only delivered 343,000 vehicles.
Tesla AI Day
At Tesla’s annual AI day, it showcased a humid robot, promised to be capable of doing “humanly things”, like water the plants. At the AI day, it slowly gestured and walked at the audience. Elon Musk says that if it can get things done at enough volume, it will be priced around $20,000. However, Elon Musk has a reputation for overpromising the prices.
Investor Sentiment Reaches “Extreme Fear”
CNN Business has a tool based on investors sentiment, and currently extreme fear is driving the markets. Last week the rating was 24, but has been downgraded to 15 this week.
