Market Overview

Tech Stocks Continued To Tumble On Tuesday

Share:
Tech Stocks Continued To Tumble On Tuesday

On Tuesday, the stock meltdown continued. It has now set the three major indices up for a third straight session of losses as the tech selloff continued. Even blockbuster Tesla Inc (NASDAQ: TSLA) saw its stock plummet 17 percent. 

Big Tech – Third Consecutive Day Of Meltdown

Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Netflix Inc (NASDAQ: NFLX) saw its shares drop further 3% at the very least. As a consequence of these negative movements, NASDAQ sank 3.3% just shortly after the opening bell.

There Is More To The Pharmaceutical Race Than Speed

On Tuesday morning, the CEOs of vaccine candidates wrote a public letter where they vowed to make safety of the vaccines their top-priority, despite being pressured with time. The letter was signed by AstraZeneca plc (NYSE: AZN), Johnson & Johnson (NYSE: JNJ) and Moderna Inc (NASDAQ: MRNA). It remains to be seen if this will be enough to put concerns to rest and amend the trend of vaccine hesitancy.

Entry Ticket To Space Drove Virgin Galactic Higher

Virgin Galactic Holdings Inc (NYSE: SPCE) shares rose 2% after UBS gave it a Buy rating, citing first-mover advantage. Despite falling by almost a third since the beginning of August, shares of Virgin Galactic managed to rise 38% for the year to date. It just shows that a ticket to space never gets old.

Tesla Was Hit Both By S&P Exclusion As Well As Nikola

Tesla had the worst drop since March's lows after two unpleasant surprises that caused its shares to slide 16% shortly after markets opened on Tuesday. First, on late Friday, the blue-chip committee announced the stock will not be included in the S&P 500 despite ticking all the boxes. Second, its competitor Nikola Corporation (NASDAQ: NKLA) entered into a game-changing partnership with General Motors Company (NYSE: GM). GM acquired an 11 percent stake in the company which amounts to $2 billion. Nikola now has access to GM's battery infrastructure to produce its Badger that is set to compete directly with Tesla's Cybertruck, along with its core line of semi-trucks. But GM also won a ticket to the EV era.

What also contributed to the negative sentiment is the dilution of shares. Also on Tuesday, Tesla announced it had completed a $5 billion share sale as of Friday. The settlement of shares sold is expected to be completed by Wednesday.

Outlook

Although we had a long Labor Day weekend, Tuesday was everything but calm seas. Considering we are still far from winning COVID and scientists warn of a potential wave during winter months, this blockbuster year is still being written. Fasten your seatbelts, as a lot more things will happen before we get to fly to space and entirely switch to electric vehicles.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post A Tumbling Tuesday appeared first on IAM Newswire.

Image by Lorenzo Cafaro from Pixabay 

 

Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

Posted-In: IAM Newswire TeslaEarnings News Emerging Markets Markets Tech General