*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
- US stocks decline, S&P500 breaks the eight-day record-setting streak, TSLA falls 16% in two days
- Investors shift their attention to today’s US inflation numbers for October
What’s on Focus in the Markets?
A lot to unpack from yesterday’s eventful trading session. Stocks slipped from their record highs on both sides of the Atlantic. At the same time, Tesla shares endured their worst day in months as the stock tumbled 12%. And Tim Cook, Apple CEO, said he owns bitcoin, Ethereum, and maybe more cryptocurrencies.
To get started, Wall Street stocks declined Tuesday as investors retreated their bets ahead of the keenly-watched monthly inflation report. That said, the S&P500 snapped its eight-day winning streak with a new record set every following day. In more detail, the blue-chip index finished its longest unbroken series of consecutive record highs since 1997.
The other two stock benchmarks, the Dow Jones Industrial Average and the Nasdaq Composite, also ended lower for the day.
The cautious approach to the financial markets comes ahead of the consumer price index report for October. In other words, the inflation report due today will show how prices changed over the past month. The important inflation data could create heightened volatility in forex markets today as well as the commodity sector.
Tesla Drops 12% in One Day, Musk’s Brother Makes $110 Million
Amid the broader market decline, Tesla stock nosedived 12% on Tuesday. The significant drop came after Elon Musk’s Twitter poll said he should sell 10% of his Tesla shares. In turn, the electric-car company has lost more than 16% of its value, or $199 billion, in the first two days of the week.
Prior to the drop, however, it was revealed that Elon Musk’s brother, Kimbal Musk, sold shares. Kimbal, who is on Tesla’s board of directors, made nearly $110 million on Friday. He exercised his right to buy options right before the weekend poll.
Kimbal Musk still holds about 511,000 Tesla shares worth around $600 million based on Tesla’s closing price of $1,162 per share.
Tesla Fall Knocks $50 Billion from Musk’s Wealth
As to the billionaire chief executive, Elon Musk, he took a hit that cost him roughly $50 billion over the past two days. At the peak of his wealth, Mr. Musk sported a net worth of $338 billion. Now, the Bloomberg Billionaires Index ranks his fortunes at $288 billion after a $35 billion loss yesterday. Nevertheless, he continues to be the world’s richest person, with Amazon founder Jeff Bezos in second place.
Still, yesterday’s mind-blowing wealth wipeout was the second biggest single-day fall in the history of the index. For comparison, Jeff Bezos lost $36 billion in one day in 2019 after he finalized his divorce from MacKenzie Scott.
Apple CEO Tim Cook Owns Cryptocurrency
In the meantime, Apple CEO Tim Cook confirmed his personal investments include cryptocurrencies. While he did not explicitly say what crypto he holds, Mr. Cook replied in the affirmative whether he owned “crypto, bitcoin, or Ethereum.”
“I do. I think it’s reasonable to own it as part of a diversified portfolio,” Tim Cook said Tuesday at the DealBook conference. He also noted he’s been interested in crypto for a while and that he’d been researching it.
To this end, bitcoin, ether, and the broader crypto market declined slightly early on Wednesday. With this in mind, the leading cryptocurrency now hovers above $66,000 per coin, while the Ethereum token trades at $4,700.
Today’s Economic Calendar (EST times)
- 08:30 am, USD, Core CPI (MoM) (Oct)
- 08:30 am, USD, Initial Jobless Claims
- 07:30 pm, AUD, Employment Change (Oct)
Subscribe to our newsletter to receive our weekly updates + more straight to your inbox!