Home Broker News Here’s Why Tesla is Worth Watching the Coming Week

Here’s Why Tesla is Worth Watching the Coming Week

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Analysts predict another volatile week during which it will be not easy to forecast which direction the market will take. Recently, traders have been paying much attention to the bond market where yields have grown as inflation was expected to rise higher, forcing investors to choose high-growth stocks to value and cyclical names.

That transition made investors regret as the NASDAQ 100 saw a third week of declines in a sequence that’s shaved off $1.6 trillion in market value at the same period. Anxiety linked to growing interest rates and their effect on stock valuations are going to stay here with us for a long time, bearing in mind the fact that Americans will soon get extra stimulus aid after the US Senate, on Saturday, passed a $1.9 trillion coronavirus relief package.

This was done by removing a major hurdle in its implementation. The Democratic-held House intends to review the bill on Tuesday and send it to President Joseph Biden for his signature before a Mar. 14th – the final deadline to renew unemployment stimulus packages agenda.

In the light of the listed above uncertain market circumstances, here is described a stock that is going to see some wins during the weekend therefore is worth putting under your radar as the week keeps going:

Tesla

Investors will be closely following the actions Tesla is going to take this week as its (NASDAQ:TSLA) shares are expected to take revenge, after the electric carmaker’s 30% drop from its January high.

Tesla’s shares ended trading on Friday at $597.95 after falling about 4% on the day as growth stocks plunged.

That plunge comes after Tesla’s stock celebrated a meteoric rise in 2020 that boosted its shares over 700%. A spike in U.S. Treasury yields and the anticipation of high inflation have influenced the stock market and helped initiate a selloff in popular growth stocks.

Tesla’s current defeat demonstrates it’s more exposed to suffer from shifting market interest than other tech behemoths because of its speculative nature.

In addition to the ongoing selloff in tech stocks, traders also believe it may be problematic for Tesla to increase its sales as company introduces price cuts on various models.

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