Stocks plunge on weak Tesla, LVMH, and Deutsche Bank earnings

Stocks plunge as Tesla, LVMH, and Deutsche Bank earnings disappoint

Stocks fell sharply following disappointing earnings from Tesla, LVMH, and Deutsche Bank, raising concerns about global business health. Nasdaq 100 futures dropped nearly 1%. LVMH and Deutsche Bank shares dropped significantly, while Tesla shares fell 8% after another quarter of poor earnings.

Stocks plunge as Tesla, LVMH, and Deutsche Bank earnings disappoint

Stocks fell sharply following disappointing earnings from Tesla, LVMH, and Deutsche Bank, raising concerns about global business health. Nasdaq 100 futures dropped nearly 1%.

LVMH saw a 5% decline due to poor sales in China, hinting at a broader economic slowdown. Deutsche Bank reported its first loss in four years and abandoned its buyback plans, causing a drop in its shares. Tesla’s shares fell 8% after its fourth consecutive quarter of disappointing earnings.

Analysts scrutinize upcoming earnings reports, looking for signs that the tech-driven rally might continue. Market volatility is expected to increase with the US presidential race heating up.

Eli Lee, chief investment strategist at the Bank of Singapore, mentioned investors are looking to take profits after the significant gains in global equities. Although tech earnings are expected to remain strong, some volatility is anticipated.

Treasury yields dipped as investors awaited US debt auctions and manufacturing data.

 

Learn how to trade stocks with Top Forex brokers.

 

The so-called “Magnificent Seven” companies, including Tesla, Alphabet, Apple, Amazon, Meta, Microsoft, and Nvidia, are expected to report a 30% profit increase in Q2, compared to a 10% rise for the S&P 500 overall.

In Europe, LVMH shares hit a six-month low due to weak results, exacerbated by currency movements and a slowdown in China. Deutsche Bank’s shares dropped 7% after a €1.3 billion litigation provision.

In Asia, shares of Tesla suppliers and electric vehicle peers declined. Taiwan’s stock market was closed due to Typhoon Gaemi.

The Japanese yen strengthened as traders anticipated a possible interest rate hike by the central bank.

Oil prices rose after a report showed US crude inventories fell for the fourth week.

 

Subscribe for our newsletter

Get Forex brokers reviews, market insights, expert analytics and education material right into your inbox for free!

You can unsubscribe any time by clicking the link in our letters.