US futures lower, Tesla shares slump after hours as deliveries fall, Bitcoin rallies
The futures market pointed to a lower open on Wall Street, with the major indexes pulling back after struggling to hold onto yesterday's gains.
The sell-off in equities comes as investors gear up for key economic data and the Federal Reserve's next move. The market will be paying close attention to Fed Chair Jerome Powell's testimony later this week, which is expected to clarify the central bank's views on inflation and interest rates.
Yesterday, the markets briefly touched intraday record highs, thanks to a jump in chip stocks fueled by hype around the products that underpin artificial intelligence. However, this momentum faded heading into the end of the session.
Today, big-box retailer Target is slated to report its latest quarterly results, which could give markets an updated glimpse into the state of U.S. consumers. Walmart's recent earnings report suggested that shoppers are choosing to forego larger purchases in favor of essential items due to high inflation and elevated interest rates.
This trend may hurt Target, which gets a large percentage of its sales from home goods, electronics, and apparel. It's worth noting that the company has implemented several measures to attract customers, such as introducing cheaper toys and decorations during the holiday season.
In other news, Tesla shares tumbled 7% in after-hours trading after the electric vehicle giant announced that shipments of its China-made cars dropped to a 14-month low in February. The decline in deliveries was likely due to disruptions caused by the Lunar New Year holidays.
However, weakening demand also brings up the prospect of more price cuts in the country, which bodes poorly for all EV players in China. Yesterday, Tesla's efforts to entice Chinese customers to buy its Model Y and Model 3 cars included a price cut of just under $5,000.
In cryptocurrency news, Bitcoin has rallied to within touching distance of an all-time high after briefly clearing $68,000. The world's largest cryptocurrency has benefited from steady capital inflows, especially after the approval of several US exchange-traded funds that track its price directly.
Its correlation with technology stocks has also played into recent gains, and investors are awaiting an upcoming halving in the rate at which new Bitcoin is generated, which is expected to tighten markets.
Today's economic calendar is light, with no major US economic reports scheduled for release. That said, the market will keep a close eye on tomorrow's release of the February nonfarm payrolls report, which could provide some insight into the health of the US labor market.