The sell off on tech stocks overwhelms global equities and continues on Wall Street, where Nasdaq futures are under ample pressure, down more than 1.4% to 13,184 points.
Futures on the Dow Jones fell 0.52% to 34,492 points, while those on the S&P 500 fell 0.78% to 4,151 points.
Sales are raging even today on Big Tech stocks, such as Apple, Facebook and Amazon.
Worse does Tesla, after Reuters reported rumors that the Elon Musk giant suspended its land purchase plans to expand its Shanghai plant and make it a global export hub. The indiscretion links this decision to the uncertainty created by the tensions between the United States and China. With the 25% tariffs on imported Chinese electric vehicles imposed in addition to existing levies under former President Donald Trump still in place, the US electric car maker now intends to limit the proportion of Chinese production in its global production. Tesla currently ships China-made Model 3s to Europe.
The Tesla stock confirms the bearish phase, which has led it to lose 21% in the last three months, compared to the boom of 700% in 2020.
Domino effect on Cathie Wood’s Ark Innovation ETF – which invests mainly in Tesla -, which slipped by 5% in yesterday’s session, falling 35% below the recent high, tested on February 16 at $ 159.70.
Ark Innovation Fund also sells today, leaving 3% in the premarket on the ground.
Wall Street is confirmed in this month of May at two speeds, with the Dow Jones up by 2.5% and the Nasdaq down by 4%.
The sell off on technology is also confirmed by the trend of Technology Select SPDR (XLK), which has lost 3% since the beginning of May, doing worse than all other sectors. XLK drops by more than -1% in premarket.
Hi-tech is discounting investors’ apparent decision to revert to value stocks, penalizing growth stocks, which have relatively high valuations. Rates on 10-year Treasuries rose to 1.60%, however, a long way off from 1.77% at the end of March.