Key Points To Watch Out For:
- Tesla shares fell 4% after Wedbush cut its target price
- Alibaba fell 18% in Hong Kong, taking the Chinese technology sector down with it
- TSMC and Foxconn fell 10% on fears for Apple’s production chain
Tesla (TSLA): Aggressive Target Price Cut Puts Pressure on the Stock
Tesla shares fell 4% in premarket trading, after dropping 10% on Friday. Wedbush Securities cut its 12-month target price from $550 to $315, citing growing risks to demand amid a worsening economic environment.
Wells Fargo (WFC) and JPMorgan (JPM): Banks in the Spotlight Due to Recession Risks
U.S. banks pointed to a negative opening, in line with their European counterparts. The threat of a tariff-induced downturn could affect credit issuance, M&A activity, and consumer confidence.
Apple (AAPL), Foxconn (TW:2317), and TSMC (TSM): Domino Effect in the Supply Chain
Apple and its main Asian suppliers suffered substantial losses. Foxconn and TSMC, which assemble and manufacture chips for the iPhone, fell around 10% in Taiwan as investors assess the impact of tariffs on production.
Alibaba (BABA) and Tencent (HK:700): Massive Fall in Chinese Technology Companies
Alibaba fell 18% in Hong Kong—one of its worst recent performances—while Tencent also experienced a sharp decline. The Chinese tech sector faces dual pressure: escalating trade tensions and a weakening local economy.
Nvidia (NVDA) and the Rest of the “Magnificent 7”: Leading Tech Stocks Open in the Red
Nvidia and other members of the “Magnificent 7” were set to trade lower, reflecting the broader sell-off in tech stocks triggered by global uncertainties, softening demand, and increased exposure to Asia.
Airbus (AIR) and Safran (SAF): Impact on European Aerospace Suppliers
Airbus shares dropped 5% and Safran fell 7% in France. European aerospace companies are under pressure due to new tariffs that could affect their U.S. business, especially engine sales to Boeing.
Kering (KER): European Luxury Hit by Fears of Lower U.S. Sales
Shares in Kering, parent company of Gucci, extended their decline, weighed down by expectations of lower U.S. revenues amid global trade slowdowns and a retreating high-spending consumer segment.
