NIO Stock Forecast: Nio rises as Chinese ADR dip continues to get bought

NYSE: NIO gained 1.7% during Wednesday’s trading session.
ADR stocks continue to rebound after Monday’s historic sell-off.
Nio is partnering with Huazhu Group to build more charging stations.

Stocks Reporter FXStreet

Nio (NIO) rose higher for the second straight day following a massive sell-off on Monday thanks to the confirmation of President Xi’s third term in power. On Wednesday, shares of NIO added a further 1.7% and closed the trading session at a price of $10.81. It was a volatile day for stocks following three straight positive sessions. Disappointing earnings from big tech weighed down the Nasdaq, and another miss by Meta Platforms (META) will surely add further pressure on the tech-heavy index. Overall, the Dow Jones managed a gain of 0.01%, the S&P 500 fell by 0.7%, and the Nasdaq tumbled by 2% during the session.

Nio stock price

Chinese ADR stocks continued to rise as investors digested the impact of an unprecedented third term for President Xi. Many of these stocks fell by 10% or more on Monday. Their Asian counterparts dragged the Hang Seng index to its lowest level since 2009 amidst a panicked sell-off in Hong Kong. On Wednesday, stocks like Alibaba (BABA), JD.Com (JD), and PinDuoDuo (PDD) all extended their rally, reclaiming much of the losses that were inflicted during Monday’s session.

Nio continues to expand its network of partners as it extended its business with the Chinese hotel chain Huazhu Group Limited. The two companies have already worked to build several charging and battery swap stations with the intent to continue the growth of the NEV industry in China. Now it seems that the two will be building battery changing infrastructure at or near the hotels owned by Huazhu.

NIO 5-minute chart 10/26/22

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.