Tesla took a hit on Wall Street on Friday. New York stock markets fell sharply again on fears of a recession and sharply rising interest rates.
Tech companies were hit hard again on Friday. For Tesla, this resulted in a 7.6% decrease. The share of the electric car maker is now worth half the highest price ever, reached in early November last year.
• The Twitter acquisition is getting more expensive every day
In addition to tech companies, banks were also in the spotlight. JPMorgan Chase, Wells Fargo, Morgan Stanley and Citigroup have all opened the books. Although JPMorgan Chase and Wells Fargo both reported declining earnings, they performed better than market experts expected. The lower profits are partly due to the fact that banks are building reserves as customers may no longer be able to pay off their loans due to rising interest rates and high inflation. JPMorgan Chase was up 1.7%, Wells Fargo 1.9%. Citigroup was up 0.7% despite disappointing results.
Investment bank Morgan Stanley, on the other hand, was lowered by 5.1%. The bank posted a 30% lower profit in the third quarter as companies became more cautious about making acquisitions, mergers and other deals. Morgan Stanley generally makes good money by recommending and leading such businesses. The bank also made less money on its investments due to the stock market turmoil.
The Dow Jones Industrial Average closed 1.3% lower at 29,634.83 points. The broad S&P 500 fell 2.4% to 3,583.07 points and the Nasdaq Tech Indicator fell 3.1% to 10,321.39 points.
The euro was worth 0.9726 dollars, against 0.9736 at the closing of the European stock exchanges. A barrel of US oil costs 3.8% less at $ 85.77. Brent crude fell 2.9% to $ 91.80 a barrel.
