Markets are a disaster.
Over the last two days, the Dow plummeted from a high of 43,900 to 42,776. The NASDAQ dropped from 18,923 and 18,183. The S&P 500 from 5,968 to 5,797.
Key Points About This Article
- Over the last two days, the Dow plummeted from a high of 43,900 to 42,776. The NASDAQ dropped from 18,923 and 18,183. The S&P 500 from 5,968 to 5,797. All thanks to new tariffs on Canada, Mexico, and China.
- While the Tesla stock is oversold, after breaking through its 200-day moving average, we’re not seeing any signs of support until $238.88 a share.
- Bitcoin now trades at $84,010 and is still sinking, which isn’t good for MicroStrategy.
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All thanks to new tariffs on Canada, Mexico, and China.
All of which are stoking fears of higher inflation, and concerns that tariffs could choke the economy, according to Moody’s. Even the International Chamber of Commerce (ICC) says tariffs could sink the world into a new Great Depression.
So, it comes as no real surprise that former high fliers are bloodbaths today.
Look at Tesla, for example.
Since mid-February, shares of Tesla (NASDAQ:TSLA) dropped from about $367 to a low of $272.77. While the electric vehicle stock is oversold, it could slip even more. In fact, after breaking through its 200-day moving average, we’re not seeing any signs of support until $238.88 a share.
Not helping, Tesla’s China-made electric vehicles fell about 49.2% in February thanks to tough market competition. Deliveries fell 51.5% in January. Also, according to Morgan Stanley, recent sales weakness is a “buyer’s strike” with CEO Elon Musk’s political activities.
MicroStrategy is Down 41% Since January
Since peaking at $404.42, shares of MicroStrategy (NASDAQ:MSTR) are now down to $240.28, a 41% loss in weeks. Sure, the company owns 499,096 Bitcoin, which was a great revenue-producer when the digital currency soared well above $100,000.
Nowadays, Bitcoin trades at $84,010 and is still sinking, which isn’t so great for MSTR. It’s all a quick reminder that cryptocurrency market volatility has a substantial impact on stocks like this one.
Technically, MSTR did catch support at its 200-day moving average, where it’s consolidating. Hopefully, it’ll turn higher. If not, and it breaks below its 200-day, its next line of support is at about $197.10 a share.
Intel is Down 22% Since Mid-February
Since peaking at $27.55, Intel (NASDAQ:INTC) sank to $21.42, giving up 22% in just weeks.
While the tech giant did get a boost on news Nvidia and Broadcom are testing its chip manufacturing process, the move didn’t last long. There was even news Taiwan Semiconductor Manufacturing’s (TSMC) CEO C.C. Wei could potentially buy Intel’s foundry business. Unfortunately, that never materialized, sinking the stock. We also have to consider that such a transaction would face significant approval challenges.
Not helping, the company’s market share of CPUs, GPUs, and data centers is eroding. It’s seeing increasingly strong competitive challenges from Advanced Micro Devices and Nvidia. We also have to consider that earnings and guidance haven’t been impressive, with net income and free cash flow continuing to drop.
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