NKLA - Stock Markets Bounce Off Lows; Tesla Nikola Lead EV Stocks Down
Amid the COVID-19 pandemic, relations between the U.S. and China largely faded into the background. However, new tensions have brought disputes back into the spotlight, and that's been a source of concern for professional investors on Wall Street. Just after 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 69 points to 26,584, after having been down almost 200 points earlier in the session. The S&P 500 (SNPINDEX: ^GSPC) fell 12 points to 3,223, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 79 points to 10,383.
Disappointing earnings from some of the biggest companies in the stock market contributed to the downbeat mood among market participants Friday morning. Yet that also weighed on some of the high-flying sectors of the market. In the red-hot electric-vehicle industry, Nikola (NASDAQ: NKLA) and Tesla (NASDAQ: TSLA) posted notable declines that pulled down peers like NIO (NYSE: NIO), Workhorse Group (NASDAQ: WKHS), and Tortoise Acquisition (NYSE: SHLL) along with them.
Shares of Nikola dropped 9% Friday morning, continuing its steep decline recently. The electric-truck manufacturer's stock has lost half its value just since the beginning of July. Investors aren't certain whether the future will be brighter for the company, either.