U.S. Indices fall, as Business activity slows
Data released today shows that U.S. business activity has so far slowed down in September, whilst still remaining in growth territory.
The report comes as IHS Markit released its flash U.S. Composite PMI Index, which tracks both the manufacturing and services sectors. Figures slipped to a reading of 54.4 this month from 54.6 in August, a reading above 50 symbolises growth.
Despite a surge of 8.9% from Nike, leading to a record high valuation, the S&P 500 was down 1.62%, while the Nasdaq fell 2.21%. The Dow Jones was the best performing index with a decline of 1.36% in mid-afternoon trading.
Tesla drops $50 billion
After being one of the biggest bulls in 2020, the last few weeks have seen several ups and downs for Tesla.
The world’s most valuable car maker today saw its share price fall, as investors slashed $50 billion from the company’s market value. The move comes despite promises from CEO and Founder Elon Musk to cut electric vehicle costs.
Musk stated to an online audience of more than 270,000, “In three years… we can do a $25,000 car that will be basically on par [with], maybe slightly better than a comparable gasoline car.”
Shares in Tesla were down 9.66% and contributed to the NASDAQ falling 2.21% overall.
Gold continues to shed pounds
Gold prices fell to their lowest level since August 12th as this week’s sell off continued in today’s trading session.
As of writing, XAUUSD is trading at $1,865, which is also a long term floor. Prices in the metal have been on the decline since reaching an all-time high of $2,074 in August.
Many believe that the safe-haven market could be set for further drops as we head into the U.S. election on November 3rd.
Quote of the day – “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.”Peter Lynch
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Senior Market Analyst