Tesla, the major electric vehicle manufacturer, announced its second-quarter financial results yesterday. However, due to lower-than-expected profits, profit margins falling to the lowest in five years, and Musk delaying the release of Robotaxi to 10/10 , he admitted that he had been too optimistic before.
After the U.S. stock market opened last night, TSLA continued to fall, closing down 12.33%.
Technology stocks plummeted, and all four major U.S. stock indexes fell
In addition to Tesla, Google's parent company Alphabet's stock price fell by more than 5%, the largest single-day decline since the end of January this year, and Huida also fell by more than 6%. With all seven major U.S. stocks collapsing, the four major U.S. stock indexes all plummeted:
- The Nasdaq index fell 654.94 points, or 3.6%, to close at 17,342.41 points, the largest one-day drop since October 2022
- The S&P 500 index fell 128.61 points, or 2.3%, to close at 5,427.13 points
- The Dow Jones Industrial Average fell 504.22 points, or 1.25%, to close at 39,853.87 points
- The Philadelphia Semiconductor Index fell 292.24 points, or 5.41%, to close at 5,105.65 points
Will the Fed cut interest rates next week?
Against this background, we may be smelling signs of economic recession in the United States. Dudley, the former chairman of the Federal Reserve Bank of New York, said: I have long been in the camp of "keeping interest rates high for a longer period of time." I believe that to control inflation, short-term interest rates must be kept at or higher than current levels. ; But the change of circumstances made me change my mind. I now believe that the Federal Reserve should cut interest rates, preferably at the interest rate meeting next week.
According to the CME Group's FedWatch tool , the market expects that at the FOMC interest rate meeting to be held next week, there is a 93% chance that the Federal Reserve will maintain current interest rates unchanged. But by September, the chance of a one-size reduction for the first time was 89.6%.
