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Midday Movers: Airline Stocks Soar, Nvidia and Tesla Slump

Midday Movers

Airlines stocks are in the news again with huge gains on midday trading, thanks to speculation of good business in the holiday season. However, the same can’t be said for technology giants Tesla and Nvidia, as their stocks slumped on Wednesday.

Tuesday was the day that broke the green streak, and Wednesday midday saw a bounce back from US equities. Airline stocks were the clear winners, as Thursday's Thanksgiving holiday could increase airline revenues. Dow Jones, S&P 500, and Nasdaq all saw a healthy rise. Airlines stocks started accelerating toward the sky after the latest travel data predicted "busier than ever” Thanksgiving travel across the country.

As a result, shares of American Airlines Group (AAL) rose to 2.9% intraday, Jet Blue Airways advanced 1.1%, and Delta Airlines jumped approximately 1.7%.

However, even when the market experienced strong gains and an exponential rise in its quarter results, Nvidia stock took a hit on Wednesday midday. Nvidia, known for its AI advancements and best-in-class GPUs, recently released its best-ever quarter result. Accordingly, its share rose on Tuesday but fell again on Wednesday. The result came after the management highlighted the concern of lower sales for the next quarter due to recent export restrictions to China.

The share of Nvidia (NVDA) was trading at approximately $500 levels on Tuesday but fell to $480 levels on Wednesday, a fall of 2.46%. Even after that, the investors are positive on Nvidia and still maintain a buy rating. Hans Mosesmann, a stock analyst, expects the share to double in value by next year and gives a target of $1100.

A similar pattern was seen in the stocks of electric car maker Tesla. The business, under the leadership of its CEO, Elon Musk, has long been a market darling. Nonetheless, investors might be worried about the increasing competition in the electric vehicle space. Tesla also announced price cuts again, lowering them by a big margin this time to $3000.

Furthermore, Tesla has been under the radar as a consequence of concerns regarding the safety and security of the Autopilot feature. This could also be the reason for Tesla’s share price to fall. On Wednesday, Tesla (TSLA) stocks turned red by -2.90%. Although analysts were not so bullish on Tesla, investment firm Baird reiterated that it was the best pick of the year.

In conclusion, the midday movers represent the market's overall volatility. With the speculated rising travel business, airline stocks pushed the overall market into the green. However, technological stocks such as Tesla and Nvidia are struggling to hold onto their market value in the face of supply chain problems, safety concerns, and geopolitical restrictions. Since it is impacted by a wide range of shocks and events, the stock market is always fascinating to watch and study.

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Key Takeaways

  • Ahead of Black Friday and Thanksgiving, Stocks found their way back to Green.
  • Nvidia’s stock fell just a day after its thunderous quarter report.
  • Airline stocks turned green with the confidence of good business amid the holiday season.

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