EV - Why Nio Stock Fell Once More Earlier Today

October, 13 2022 07:12 PM Eaton Vance Corporation

Nio Stock ( NYSE:NIO )

Nio stock ( NYSE:NIO ) has dropped by more than 40% in the last month, far exceeding the roughly 14% decrease from the S&P 500 index over the same period. Nio stock has lost another 2.5% today as of 11:25 a.m. Eastern Time and is continuing its downward trend. Nio stock price dropped by 7% when it reached its daily low.

Then what?

A double dose of negative macroeconomic news is primarily responsible for today’s decline in price. The latest report on inflation in the United States was, once again, far worse than anticipated. After two months of sluggish monthly growth, the Consumer Price Index increased at a faster clip in September, increasing by 0.4% month over month compared to the previous month. Although Nio ( NYSE:NIO ) does not currently do business in the United States, the potential for the Federal Reserve to be forced to hike interest rates much farther than intended does have worldwide repercussions. The International Energy Agency (IEA) delivered the second dosage of bad news when it said in its monthly market report for October that the newly agreed oil production cutbacks from OPEC+ might lead to a worldwide recession. This was the second dose of bad news that was delivered.

What’s Next?

To be more specific, the International Energy Agency (IEA) made the following statement: “With persistent inflationary pressures and interest rate rises taking their toll, increased oil prices may prove the tipping point for a global economy already on the edge of recession.”

Nio stock has recently released several new models and is increasing its European supply capacity. It is quite possible that a world...

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Company Name:	Eaton Vance Corporation
Stock Symbol:	EV
Market:	NYSE