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The US stock market experienced three consecutive declines on Friday, sparking concerns among investors about Federal Reserve policy and the situation in the Middle East, leading to a heavy blow to risky assets. As of the close, the Dow fell 286.89 points, or 0.86%; The Nasdaq fell 1.53%; The S&P 500 index fell 1.26%. At the same time, popular technology stocks generally fell this week, with Tesla plummeting by over 17% for three consecutive days, and its market value has evaporated by a total of 995 billion yuan.
The sharp drop in Tesla's stock price is seen as a market focus, with TSLA's stock price falling 3.69% to $211.99 and its market value shrinking to $672.86 billion. Tesla's stock price has fallen 17.77% in the past three trading days, with a market value of 136 billion US dollars evaporated, equivalent to approximately 995 billion RMB. Tesla's 2023 third quarter financial report shows that the company's revenue for the third quarter of this year was approximately $23.4 billion, a year-on-year increase of 9%, but lower than market expectations. Net profit decreased by 44% to $1.853 billion.
Tesla CEO Elon Musk stated on the earnings conference call that the company is still committed to reducing car prices despite facing market pressure. This news has sparked market concerns about the prospects of the electric vehicle industry, especially in the context of high interest rates.
In addition, the rise in the yield of US treasury bond bonds has put heavy pressure on the stock market. Due to worries about inflation, the yield of US treasury bond bonds rose this week, and investors worried that this would have a negative impact on the financial market. Cleveland Federal Reserve Bank Chairman Maester stated that she believes the inflation risk in the United States is biased upwards, and the Federal Reserve may raise interest rates again this year.
In addition, the uncertainty of the Middle East situation has also exacerbated market anxiety. Investors are closely following the statement of Israeli Defense Minister Yoyaf Galant, who stated that Israel plans to establish a new "security regime" by destroying Hamas's military power. The Middle East crisis has caused significant fluctuations in oil and stock markets, prompting investors to reassess their investment strategies.
At the same time, the performance of Bitcoin (BTC), which is regarded as a safe haven tool, is attracting attention in the market. Bitcoin prices have risen by over $1000 in just one day, attracting the attention of supporters and being considered a safe haven tool. This performance highlights the uncertainty and variability of the cryptocurrency market.
Finally, the price of gold continued to rise, although it did not close at $2000, it broke its closing high since July 31st for two consecutive days, rising for four consecutive days. This indicates that investors are seeking safe haven assets to counter market uncertainty. Especially in the context of the outbreak of the Middle East crisis and increasing global economic uncertainty, gold has once again received attention as a safe haven asset.
Overall, the US stock market is facing multiple uncertainties, including rising interest rates, turmoil in the Middle East, and concerns about high valuation technology stocks such as Tesla. Investors need to closely monitor these factors and adjust their investment strategies to adapt to the constantly changing market environment.
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