Investing.com - US equities opened lower on Wednesday as the vaccine news rally in recent days seems to have run its course. Meanwhile, President-elect Joe Biden dimmed hopes for an early end to the trade war with China, and fresh data showed the economy slowed in November under pressure from the latest wave of the pandemic..
Biden said he would keep existing import duties on Chinese goods for now and took a tough stance against China's trade abuse and industrial espionage. These comments, which contradicted the non-confrontational approach during his tenure as vice president, suggested that a quick improvement in relations between the world's two largest economies should not be expected..
Payroll processor ADP said private sector jobs grew by only 307,000 in the month to mid-November, well below the expected 410,000 gain. But October data was revised from 365,000 to 404,000..
By 0945 hours ET (14:45 GMT), the Dow Jones Industrial Average fell 126 points, or 0.4%, to 29.698. S&P 500 and Nasdaq Composite also dropped 0.4%.
A bill in the House of Representatives to exclude Chinese companies from US exchanges if they do not meet US audit requirements has triggered a sell-off in some Chinese tech companies that seemed “ripe” for profit taking anyway, after surging in recent weeks. Electric vehicle maker Nio shares slump more than 12% at open but rebounds to 6.1% by 09:45 am ET (14:45 GMT).
Other EV stocks were also hit, with Li Auto down 4.8%, Xpeng down 4.6% and China Automotive down 8.1%..
Meanwhile, Tesla (NASDAQ: TSLA) shares plunged 3.9% after an internal email from Elon Musk claimed the stock could plummet if the company fails to control its spending..
Tesla shares are still within reach from all-time highs reached earlier this week, pending S listing&P 500.
By Jeffrey Smith
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