S&P 500 falls amid inflation concerns
The S&P 500 dropped to its lowest level in nearly 2-weeks today, as inflation concerns grew.
Fear of rising inflation has seen many speculate that the Federal Reserve will take action sooner than expected in increasing interest rates.
As U.S. stocks fell, the dollar weakened, dropping to its lowest level in the last 2 ½ months.
GBPUSD hit an intraday high of 1.4166 in today’s session, hitting this point for the first time since February 24th.
Indices across the board were also lower, with the NASDAQ down 0.09%, and S&P 500 0.87% lower as of writing after recovery from deeper losses earlier in the day.
Tesla shares drop as sales dip
Tesla shares were trading lower on Tuesday as it was announced that the company’s car sales were declining.
It was reported that car sales in China had dropped by 27% from March to April, with the company selling just over 25,845 vehicles.
Some believe that the drop in sales could be due to Tesla’s EVs being prohibited from some military complexes and housing compounds due to security concerns.
Tesla also saw viral protests in China in recent months, with local owners of the EV maker complaining about issues with their Tesla vehicles.
Tesla shares were down 1.88%.
FTSE 100 lower despite Johnson’s jobs vow
The FTSE 100 closed lower on Tuesday, as a stronger pound led the index to fall below the 7,000 level.
Typically, a weaker sterling is usually the catalyst for a stronger FTSE 100 as more foreign investors flock to the index.
However, today’s 2 ½ month high on GBPUSD, saw investors flee from the UK’s main index.
This also comes, as Prime Minister Boris Johnson said the government was working to bring more jobs back to the country post-pandemic.
In a statement he said, ““To achieve this, my government will level up opportunities across all parts of the United Kingdom, supporting jobs, businesses and economic growth and addressing the impact of the pandemic on public services”.
Despite these comments, the FTSE 100 closed 2.47% lower.
Quote of the day – “Do not anticipate and move without market confirmation – being a little late in your trade is your insurance that you are right or wrong.”– Jesse Livermore
Senior Market Analyst