NIO Stock Forecast: Nio mostly flat as broad market advances on Tuesday morning

NYSE: NIO gained 3.9% during Monday’s trading session.
Chinese President Xi provides hope for investors after he backs new technologies.
EV stocks rally as Tesla pops by 7% after hitting new 52-week low.

Stocks Reporter FXStreet

UPDATE: NIO stock is relatively flat on Tuesday, underperforming the major indices. The Nasdaq has advanced 1.4% at the same time that NIO sits up 0.2% at $12.23. NIO stock traded up as high as $13.21 earlier in the session before steadily trending lower. The EV sector is possibly being held back by TSLA, which is also underperforming the Nasdaq as it is only up 0.5%. The broad market advance on Tuesday seems to be fairly even, with the Nasdaq, Dow and S&P 500 all sitting ahead by 1.3% to 1.4%. Goldman Sachs (GS) earnings this morning have spurred bank and other defensive stocks to gather steam rather than growth names like Nio.

Nio (NIO) bounced off its two-year low price set last week as the broader markets rallied following a volatile trading week. On Monday, shares of Nio jumped by 3.9% and closed the trading session at a price of $12.21. Stocks reversed course from last week’s sell-off as all three major averages rebounded with a strong performance on Monday. Better-than-expected earnings from big banks provided a nice boost for Wall Street following another red-hot inflation report for September. Overall, the Dow Jones gained 1.9%, the S&P 500 gained 2.7%, and the Nasdaq rose by 3.4% on its best trading day since July.

Nio stock price

Chinese tech stocks were on the rise on Monday following some encouraging words from President Xi Jinping over the weekend. At the CCP congress that is currently taking place in Beijing, Xi delivered resounding support for investing in new technologies. China has taken pride in its own domestic EV makers, and many believe that it is one industry Xi was referring to. For the day, Nio, XPeng (XPEV), Alibaba (BABA), JD.Com (JD), and PinDuoDuo (PDD) were all trading well higher.

Electric vehicle stocks were also performing well on Monday as the sector rose alongside the bullish session from the Nasdaq. Tesla (TSLA) gained 7% for the day after reaching a new 52-week low last week. Other EV stocks on the rise included Rivian (RIVN), Lucid (LCID) and Canoo (GOEV), which signed a new binding agreement with Kingbee for 9,300 electric utility vehicles.

NIO 5-minute chart 10/17/22

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Stocks Reporter

FXStreet

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