AMC crashes on US red stocks | Financial

AMC warns in the document against investments in the company as a result of recent price movements. These would not be related to the underlying activities. AMC is one of the so-called Reddit shares, named after the internet forum Reddit where investors encourage each other to buy certain shares en masse. Private investors also raised the stock market value of the company sharply earlier this year and as a result saddled professional investors who speculate on a fall in price, so-called shortsellers, with significant losses.

The Dow Jones index closed 0.1% lower. The broad S&P 500 index fell 0.4%. Tech stock Nasdaq fell 1%.

Tesla and GM

Tesla was also in the spotlight again. The company has recalled hundreds of Model 3 cars shipped to China. This is due to problems with either the belt or the tires. Lately, Tesla has been calling tens of thousands of cars back to the garage in China and the US. Tesla stock lost 5.3%.

GM climbed just 6.4%. The company said it is ramping up production of its profitable pickup trucks, despite the chip shortages that automakers are struggling with. GM has prioritized chips for pickups by cutting production of other models. Ford piggybacked on with a profit of over 7%.

Organon

As of today, pharmaceutical group Organon from Oss also adorns Wall Street on the stock market. Organon will no longer operate under the name of drug manufacturer MSD, but will continue as an independent company. Organon was previously part of AkzoNobel. Shares of Organon opened at $34.15 and then plunged to $32.22. The price then bounced up almost 5% to $37.

ExxonMobil

ExxonMobil rose 0.4%. The oil and gas group must allow a third director of the activist shareholder Engine No.1. With a quarter of the board seats in its hands, Energy No.1 can put further pressure on the group to take a more sustainable course.

Biden wants to scrap tax hike

Investors also responded to reports that President Joe Biden has offered to scrap his proposed corporate tax hike during negotiations with Republicans. In return, they must agree to at least $1 trillion in new infrastructure spending. Biden previously wanted to increase the corporate income tax to a maximum of 28%. Now he would be willing to set a minimum of 15%.

Better than expected figures

Investors also reacted to the latest figures on unemployment claims, which came in lower than expected. The jobs report from payslip processor ADP also showed that the growth of new jobs in corporate America far exceeded the average expectation.

Concerns about inflation are also gripping the markets. New geopolitical tensions are hurting the inflation outlook. Russia announced it is cutting the dollar from its national welfare fund in an effort to reduce exposure to US assets. Earlier, US President Joe Biden revealed plans to ban investment in companies linked to the Chinese military.

–