Markets fall for the 3rd day. | VIX & Bond yields spike | Japan concerns add pressure | Tesla delivers delights- lifting shares 12% | Trump trades roar

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Strap in. The S&P500 $S&P 500 Index (.SPX.US)$ has fallen fallen for the third day. While the tech-heavy Nasdaq $NASDAQ 100 Index (.NDX.US)$ fell 1.6% from record territory. While Tesla $Tesla (TSLA.US)$ delivers good news after the market close sending its shares up 12%

WHAT'S GOING ON THAT YOU NEED TO KNOW?

Investors are spooked that the market’s fear gauge has risen to levels that often result in market pullbacks. And this is while bond yields are uncomfortably high (~4.25%), their highest levels since July. On one hand, markets are worried whoever wins the election—Kamala Harris or Donald Trump—will likely cause US debt levels to skyrocket, pushing up inflation. But now, on the other hand, there are compounding concerns from overseas. Investors are concerned that Japan could raise interest rates there. And remember the last time Japan moved interest rates? It caused the tech index, the Nasdaq $NASDAQ 100 Index (.NDX.US)$, to fall about 15% over 18 days. Australia’s market fell 6% in response.

So what are investors doing? Well, they’re buying gold investments and defensive sectors like Telcos, Staples, and food. This is very normal when there’s a risk of a pullback.

Meanwhile, we are seeing profit-taking—meaning some investors are selling heavyweight tech company stocks—ahead of them releasing earnings results next week. Meta $Meta Platforms (META.US)$ shares dropped 3%, Apple $Apple (AAPL.US)$ lost 2%, while Microsoft $Microsoft (MSFT.US)$ and AMD $Advanced Micro Devices (AMD.US)$ fell as well.

TRUMP TRADES RISE - BILLIONAIRE INVESTORS ARE POSITIONED FOR A RED WIN

buying of some Trump-benefiting companies picked up. Phunware $Phunware (PHUN.US)$ shares rose 21%. Trump Media (known as $Trump Media & Technology (DJT.US)$) rose 4% to its highest level since July.

Why? Well, billionaire and legendary investor Paul Tudor Jones said he’s positioned his portfolio for a Trump win. So too, billionaire Stanley Druckenmiller. But what’s interesting is that Paul Tudor Jones also said that regardless of who wins the US election, US debt will explode. Meanwhile, he said younger investors should have investments in Nasdaq stocks, gold, bitcoin, and commodities. All of this he has been accumulating. But he also said commodity investments are very underpriced.

TESLA DELIVERS - SEND ITS SHARES UP 12% AFTER HOURS - SETTING THEM ON COURSE FOR A RECOVERY

Tesla $Tesla (TSLA.US)$ shares surged 12% after hours, after Tesla reported stronger-than-expected profit, with the company benefiting from environmental credits. It’s a win for Tesla shareholders but also for EV commodity metals such as silver, copper, and aluminum as Tesla plans to ramp up EV production.

Tesla not only sees more sales for the year ahead, more than expected, thanks to a rebound in demand for its vehicles. But the real feather in Elon Musk’s cap was that Tesla confirmed it will start producing its most affordable model yet in the first half of 2025. And this will boost total production by 50% next year.
Also a win for Tesla was that the Cybertruck, launched late last year, became a profitable product line for Tesla for the first time. And all in all, its automotive gross margin, a closely tracked profitability metric for Tesla, surged to 17.1%, a 2.2% rise from the prior quarter. Keep Tesla on your radar—its shares will probably rev up after falling 18% since September.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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Jessica Amir

Moomoo Official Market Strategist

moomoo, market strategist. Seen/heard on Fox News Business, ABC, SBS, Reuters wires. Investor/Trader. Connect with me.

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