It was a wild day for the stock market rally, at least for the Nasdaq and especially speculative growth names such as Tesla stock and China EV rival Nio (NIO). The Nasdaq fell more than 3% intraday, but rallied back for a modest loss. The Bitcoin price plunged for a second straight session.
Square stock fell 4% early Wednesday. SQ stock retreated 4.3% Tuesday after rebounding from its 50-day line. Upwork stock skyrocketed 21% and PubMatic jumped 13% overnight after both rallied sharply Tuesday from key levels intraday. UPWK rebounded from its 50-day line to finish modestly higher. PUBM closed for modest losses but after plunging below a buy point, making it very hard to hold.
The Nasdaq had looked like it was flashing a vertical violation intraday as it tumbled rapidly through its 50-day line. But the strong rebound to modest losses leaves the market direction unclear. The Dow Jones and S&P 500 erased relatively modest losses to close just above break-even. The stock market rally could simply be in a sector rotation, with rising yields and commodity prices spurring a shift into mining, agricultural and financial stocks.
Dow Jones components Caterpillar (CAT), Disney (DIS) and JPMorgan Chase (JPM) advanced, all extended from recent breakouts. Microsoft (MSFT) edged lower but rebounded from its 10-week line and closed above its 232.96 buy point.
The Bitcoin price fell below $45,000 intraday Tuesday after topping $58,000 on Sunday. The cryptocurrency recovered to nearly $51,000 overnight in active trade, helped by Square announcing new Bitcoin purchases. Bitcoin is well above where it was before the market open on Feb. 8, when Tesla disclosed it had bought $1.5 billion worth of the cryptocurrency.
Tesla Rebounds, Workhorse Crashes
Tesla stock fell 2% to 698.84 on Tuesday but after falling as low as 619. Shares are still down nearly 11% so far this week and 11% below its 10-week line.
TSLA stock rose 3% early Wednesday after ARK Invest’s Cathie Wood said ARK bought “a lot” on Tuesday, later shown to be about 240,000 shares. That follows a big Ark buy of Tesla stock on Monday and Wood talking up the company last week.
Tesla is ARK’s biggest holding across its ETFs and in many ways is a marker for the type of speculative growth plays that Cathie Wood focuses on.
Nio stock sank 3.1% to 49.11 after skidding as low as 41.66. Shares tumbled 7.8% on Monday, knifing through its 50-day line. Nio stock rose slightly overnight. Nio earnings are due March 1.
But some EV stocks fared far worse. EV…
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