US: Weak consumer confidence data hits stocks as Tesla tumbles
WALL Street stocks mostly fell on Tuesday following weak US consumer confidence data, while Tesla shares dove on a big drop in European auto sales.
US consumer confidence in February saw its largest monthly decline since August 2021, according to a Conference Board survey that comes on the heels of other lackluster US reports.
Meanwhile, Tesla sank 8.4 per cent following data showing a big drop in car sales in Europe, where Musk’s fervent support of President Donald Trump and other far-right political figures has drawn criticism.
The tech-rich Nasdaq Composite Index tumbled 1.4 per cent to 19,026.39.
The broad-based S&P 500 shed 0.5 per cent to 5,955.25, while the Dow Jones Industrial Average advanced 0.4 per cent to 43,621.16.
American buyers sharply increased their expectations that inflation would reignite, citing concerns about the impact of Trump’s trade and immigration policy proposals on prices, according to the consumer report.
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“This index says that consumers are rattled,” said a note from High Frequency Economics.
“Their current situation is not so bad,” it said, but a growing number “do not feel so good about the future.”
Consumer spending “has been the key driver of the US economy,” said the High Frequency Economics note. “If confidence sags and consumers retrench, GDP growth will go down.”
Upcoming data releases will give additional colour on the US economy, with investors especially keen for Friday’s inflation data.
Among individual companies, Home Depot climbed 2.8 per cent after reporting better than expected results despite noting “ongoing pressure” on consumers undertaking large home improvement projects. AFP
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