The increasing frequency of down days is starting to take its toll on market sentiment. U.S. stock markets looked beyond the strong earnings results from Goldman Sachs (GS) and Morgan Stanley (MS). Goldman posted a profit increase after benefiting from increased trading activity. Morgan Stanley took a one-time charge, sending profits lower in the quarter. Their share price rose to 52-week highs before the report. Markets are looking ahead instead, selling out of stocks with the most risks.
After Chinese technology stocks stumbled on Tuesday, bears may renew their selling in Alibaba (BABA), Baidu (BIDU), and Tencent (TCEHY). Investors are worried that Chinese military research uses AI models powered by Baidu’s Ernie and iFlyTek’s Spark. They both use large language models. All three firms are at risk of testing new 52-week lows. Bearishness is so high that PDD, which owns the popular Temu app, is forming a downtrend.
In the volatile EV sector, CEO Elon Musk, who owns 13% of Tesla (TSLA) or 411 million shares, expressed a desire to take a 25% voting control. TSLA stock is the best EV stock to own, so investors are dumping Fisker (FSR), Lucid Motor (LCID), Rivian Automotive (RIVN), and VinFast (VFS).
Markets are still reeling from Hertz’s (HTZ) decision to sell all 20,000 Tesla EVs. HTZ stock closed near a 52-week low in the last week.
