![]() The stock fell 40% in December alone.įollowing that downturn, CEO Musk acquired Twitter, as shareholders worried that his new acquisition was distracting them from Tesla. “Does Powell concede there has been much progress on the battle over inflation, or will he maintain a stubborn view that tightening must continue for much longer.The latest drop adds to Tesla’s unprecedented 65% drop in 2022, when it lost more than $900 billion of its market value from peak to trough. And he added that even with a 25 basis point hike, Powell’s tone will be crucial. Siegel said he will be carefully watching Chair Powell’s post-FOMC press conference tomorrow, where Powell has delivered hawkish remarks that sent markets lower in the past. “There will be tremendous selling pressure for the risk markets, and we could easily see a 1,000-point drop in the Dow immediately,” he wrote in weekly market commentary, adding that even a 25 basis point rate hike doesn’t mean stocks are “all clear.” But Siegel warned that if chairman Jerome Powell chooses to raise interest rates by 50 basis points instead, as he did in December, it could be a disaster for investors. ![]() ![]() But Siegel warns the Dow could drop 1,000 points “immediately” if the Fed goes too big with its next rate hike.Įconomists and investors are optimistic, and expect the Fed to raise rates by just 25 basis points (bps) on Wednesday in the wake of the latest Federal Open Market Committee (FOMC) meeting, where officials convene eight times a year to decide interest rate policy. After the Federal Reserve raised interest rates seven times to fight the rise of inflation last year, Siegel said that investors are betting its tactics have worked. ![]()
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