Wall Street Opens Sharply Lower as Rivian Sales Stoke Fears; Dow Down 420 Pts
2022.05.09 16:46
By Geoffrey Smith
Investing.com — U.S. stock markets opened sharply lower on Monday as fears about rising interest rates were compounded by signs of increasing stress in some technology stocks.
By 9:35 AM ET (1435 GMT), Dow Jones futures were down 421 points, or 1.3% at 32,478 points. The S&P 500 was down 1.5% and the Nasdaq Composite was down 1.7%.
The mood was soured by the sight of early backers of electric van maker Rivian Automotive – an example of the ‘profitless tech’ sector that has come under the most pressure from the rising interest rate environment – reducing their holdings at a steep discount. Ford Motor (NYSE:F) reportedly sold some 8 million shares while another unnamed seller, thought by most to be Amazon (NASDAQ:AMZN), sold another 12 million shares, both at a discount of around 6% to Friday’s closing level.
Rivian stock fell 13% to a new all-time low in the first minutes of trading.
