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NASDAQ drops as U.S. markets reopen

Today’s Waves – 8th September

NASDAQ drops as U.S. markets reopen

U.S. markets opened after the Labour Day weekend, with the NASDAQ being one of the indices to drop.

The tech centric index fell by more than 3% at the open on Tuesday as investors sold off shares of Tesla and other tech heavyweights, while ongoing U.S.-China tensions and concerns surrounding an economic rebound also weighed on sentiment.

Overall, the NASDAQ dropped 3.65%, the Dow Jones fell 0.74%, at the open to 27,925.23, while the S&P 500 fell by 1.61%.

Tesla drops 15% as it fails to make S&P 500

After recent rallies in 2020, many had expected Tesla to be added onto the S&P 500 – however America’s benchmark index opted not to include the company.

Tesla shares tumbled on Tuesday, after the Elon Musk’s led company was left out of the S&P 500 last week.

Shares were down around 15% in afternoon trading. The stock has been on a high this year, having risen close to 400%.

EU say no-deal Brexit is likely

After UK Prime Minister Boris Johnson warned the EU that a no-deal Brexit would happen if a deal wasn’t reached by next month, Europe’s chief negotiator has responded in kind.

Speaking today, Jean-Claude Juncker stated, “The situation is not developing in the best direction possible. No deal is the most possible and probable and only outcome of the negotiations”.

The DAX fell to an intraday low of 12,851 on the news.

Eliman Dambell

Senior Market Analyst