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Here’s what it looks like at the opening on Wall Street:
- The Nasdaq Technology Index was down 1.27 at launch.
- The industrial-heavy Dow Jones is down 1.6 percent.
- The broad S&P 500 Index is down 1.38.
An hour after opening, the major indices continue to fall. The S&P 500 was down 2.36 percent, while the Nasdaq was down 1.9 and the Dow Jones was down as much as 3 percent.
Much of the decline in recent weeks has been driven by declines in tech stocks, including Facebook, Amazon, Apple, Google and Microsoft. These continue to fall for the fourth consecutive week.
Nikola’s stock is today’s loser and is down 27 percent from the start.
NKLA is the loser of the day
Nikola makes electric vehicles for the transportation industry and has been idle for the past week after Hindenburg Research filed a report accusing the company of fraud.
Founder Trevor Milton was quick to dismiss the allegations and took to Twitter multiple times where he responded to the allegations.
Today’s steep decline comes after it was announced that Milton will step down as president of the company. In the lead-up to trading, the stake was likely to drop by as much as 30 percent.
The drop in Nikola’s stake is driving down the stake of the hydrogen company Nel, which has a partnership agreement with the company. The shares fell nearly 20 percent on Monday afternoon.
– We have been in dialogue with them before this news. Mark Russell remains the CEO and emphasizes that the strategy remains unchanged, and also his obligations to us remain unchanged, says Jon André Løkke, CEO of Nel to DN.
Several banks fell after the disclosure
Shares of major banks JPMorgan, Deutsche Bank and British bank HSBC Holdings also fell early, by 3.47, 1.62 and 4.61 percent, respectively. This after Sunday night, several documents marked as Fincen files were leaked, revealing suspicious transactions processed by several of the banks.
In pre-trade, Deutsche Bank was at its lowest level since April with a drop of 8 percent, while HSBC was down 6 percent.
The Fincen initiative is led by the international journalists’ organization ICIJ and the US online newspaper Buzzfeed. According to Buzzfeed News and ICIJ, FinCEN received more than two million SAR reports in 2019. It is said that between 2011 and 2017, FinCEN received more than 12 million SAR reports.
The persistently low interest rate may have also helped push stocks lower.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
