Why Nio Stock Dropped Again Today
Nio (NYSE: NIO) stock has tanked more than 40% in the last month, far outpacing the approximately 14% decline in the S&P 500 index. Nio shares continue to slide today, down 2.5% as of 11:25 a.m. ET. The stock was down as much as 7% at the day's lows.
Today's drop comes mostly from a double dose of unwelcome macroeconomic news. In the U.S., inflation data was again worse than expected. The Consumer Price Index rose 0.4% in September month over month, which was an acceleration after two months of slower monthly growth. Nio doesn't yet do business in the U.S., but the prospect for the Federal Reserve to have to raise rates even more than hoped has global implications. A second dose of bad news came from the International Energy Agency (IEA), saying in its October monthly market report that the recently announced oil production cuts from OPEC+ could lead to a global recession.
Source Fool.com
