U.S. stocks experienced a decline on Wednesday, extending the losing streak on Wall Street to three days as the market grappled with rising Treasury yields and disappointing earnings. However, after hours, Tesla’s stocks saw a surge following a better-than-expected earnings report, rising by more than 9%. Tesla announced plans to begin production on more affordable models early next year, with a projected 50% growth in 2025 compared to its 2023 production volumes.
The major indices closed as follows:
- S&P 500: 5,797.42 ⬇️ down 0.92%
- Nasdaq Composite: 18,276.65 ⬇️ down 1.60%
- Dow Jones Industrial Average: 42,514.95 ⬇️ down 0.96%
- STOXX Europe 600: 518.84 ⬇️ down 0.30%
- CSI 300: 3,973.21 ⬆️ up 0.39%
- Nikkei 225: 38,104.86 ⬇️ down 0.80%
- Bitcoin: $66,516.72 ⬇️ down 1.32%
U.S.: Wall Street’s losing streak enters third day
A weak day for tech companies led to a decline on Wall Street, with Nvidia sliding 2.8% and Apple falling 2.2%, contributing significantly to the S&P 500’s drop. The S&P 500 closed at 5,797.42, marking its first three-day losing streak since early September. The Dow Jones Industrial Average fell by 409 points, or 1%, to 42,514.95, while the Nasdaq composite tumbled 1.6% to 18,276.65. Starbucks shares declined after its new CEO withdrew the company’s 2025 financial guidance, and McDonald’s stock also saw a drop due to a deadly E.coli outbreak.
Europe: Shares slip as court rules against Deutsche Bank
European stocks faced a decline after Deutsche Bank lost a court case related to its Postbank acquisition, causing shares to fall by 2.9%. Despite reporting strong Q3 earnings, the Stoxx Europe 600 index decreased by 0.30%, with utilities being among the few gainers.
China: Shares ease higher following big stimulus recommendation
Chinese shares saw a slight increase after a state-backed think tank recommended the government issue 2 trillion yuan ($281 billion) in special bonds to stabilize the market. The CSI 300 index rose by 0.39%, while Hong Kong’s Hang Seng surged by 1.27%, led by China Resources Beverage’s 14% increase in its trading debut, which was the second-largest IPO in the city this year.
Japan: Shares fall despite Tokyo Metro’s blockbuster IPO
The Nikkei 225 index dropped by 0.80%, driven by a 4.9% decline in Recruit Holdings. Tokyo Metro’s IPO, the largest in Tokyo since 2018, saw shares soar by 45% in their debut after being oversubscribed 15 times.