Tech Sell-Off Continues in the U.S., NASDAQ Down more than 2%

Equities in the U.S. market moved sharply down with the selloff in tech stocks continuing after closing Friday in the green. Bond yields spiked after a 3-day fall with the threat of inflation scaring investors.

The losses across the market are being led by giants of the market including Amazon and Facebook. However, energy and materials stocks moved higher along with rising commodity prices.

Stoxx Europe is down by 0.40%
Dow Jones is down by 1%
NASDAQ is down by 2.17%

Evergrande To Raise $5 Billion From Property Unit Sale

Chinese media reported on Monday that Evergrande is planning to sell a majority stake in its property management business for more than $5 billion(Rs 37,13,590 crores). The Evergrande group is having a debt of $305 billion(Rs 22,65,289 crores) and if the deal goes ahead, it will be a great escape plan. The company on Monday requested a halt in the trading of its shares in Hong Kong pending an announcement about an important transaction.

Tesla Jumps After Q3 Updates

Electric Vehicle maker Tesla rose more than 3% on Monday in NASDAQ after a promising Q3 update. The company recorded a 73% jump in deliveries during the period compared to last year. It has delivered 241,300 electric cars and produced 237,823 units.

Volvo Looking to raise $2.9 Billion in Stockholm Listing

Volvo Car is looking to raise at least 25 billion kronor ($2.9 Billion) in its initial public offering despite the sales crunch due to the global chip shortage. Funds from the IPO will help the Swedish carmaker shift to fully electric cars and a direct-to-consumer sales and subscription model. 

Volvo is currently owned by China’s Geely, who said that they intend to remain as its largest shareholder after the IPO this year.

China Tech Stock Benchmark Tests Lows on Regulatory Pressure

The Hang Seng Tech Index dropped as much as 2.7%, bringing the gauge to less than 1% away from its Aug. 20 record low. The benchmark which includes firms like Tencent Holdings Ltd. and Alibaba Group Holding Ltd. has fallen for three consecutive weeks on concerns over whether the curbs have further to run. 

Amplify Shares Fall 50% After California Oil Spill Stops Production

Shares of oil and natural gas company Amplify Energy fell heavily more than 50% on Monday in NYSE after a large oil spill from a rig operated by the company’s subsidiary Beta Offshore was found off the southern California coast. The spill has spread across 13 square miles of the Pacific Ocean and production has been shut off with investigations going on. The share has moved 800+% in the last 11 months and investors have lost 50% in a single day.

Crude Oil Prices Hit Multi-Year Highs

Oil prices are continuing their bull run, hitting multi-year highs with the Organization of the Petroleum Exporting Countries and allies continue their decision of a gradual increase in supply, even under higher demand from consumers. U.S crude oil is at a multi-year high since 2015 and UK Oil is at a high since 2018 November. OPEC+ will add 400,000 barrels per day to supply every month until at least April 2022.