NIO Stock Forecast: Nio sheds weight as global recession fears stifle its rally
- NYSE: NIO fell by 0.8% during Thursday’s trading session.
- Nio could be facing headwinds from slowing economies in Europe and China.
- EV stocks rally as investors shrug off recent recalls from Rivian.
Nio (NIO) slipped lower yet again despite a historic broad market rally following September’s CPI report. On Thursday, shares of NIO fell by 0.8% and closed the trading session at a price of $12.78. It was a day for the ages on Thursday after a sharp decline early on as all three major averages surged higher and erased any losses from earlier in the day. The indices actually ate up the losses of the past week. Overall, the Dow Jones added 2.8%, the S&P 500 gained 2.6%, and the Nasdaq posted a 2.2% rise during the session.
Nio stock price
Investors paused on Thursday after the International Energy Agency (IEA) warned that the recent oil production cuts from OPEC+ could very well pave the way for a global recession. Growth companies like Nio would obviously be affected by a drop in consumer demand, particularly in China and its newest markets in Europe. There are already signs that the economies in China and Europe are slowing, and the warning from the IEA only compounded investors concerns over a looming recession.
Electric vehicle stocks were on the rise for the most part as the sector gained alongside the Nasdaq exchange. Tesla (TSLA) bounced off its recent lows and gained 2.1% after reaching oversold territory. Other EV stocks on the rise include RIvian (RIVN) and General Motors (GM). Rivian has rebounded well this week after announcing a sweeping round of recalls for nearly all of its electric trucks. Lucid (LCID) was trading lower after announcing its own recalls on Tuesday.
NIO 5-minute chart for 10/13/22
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Stocks Reporter
FXStreet
