The stock exchanges in New York were largely positive on Wednesday, but saw earlier gains evaporate. Tech funds advanced across a broad front. Investors in the US were preparing for a long weekend. On Thursday Wall Street remained closed due to Thanksgiving. Only half a day will be traded on Friday.
The Dow-Jones index eventually closed at 24,464.69 points. The broad S & P 500 gained 0.3 percent to 2649.93 points and the technology heavy Nasdaq climbed 0.9 percent to 6872.25 points.
Tesla is going to lower the prices of its electric cars in China to compensate Chinese customers for the import duties on American cars. The prices of the Tesla Model S and Model X are reduced by 12 to 26 percent.
Elon Musk’s company said the reason for a significant share of import duties to make cars more affordable for customers in China, the world’s largest car market with strongly increasing sales of electric vehicles.
In order to avoid Chinese tariffs on US imports, Tesla is working on the construction of a large factory near Shanghai in order to be able to produce locally. Last month, Tesla signed an agreement on the rent of a piece of land in China where the first factory of Tesla should be built outside the United States.
Currently Tesla imports all cars that it sells in China. The company stated earlier that the import tariffs ensure that the company is making extra haste with the construction of the Chinese factory. In this way, the costs for transport by sea must also be cut. Recently the company started with the pre-sale of the new Model 3 in China.
Apple trimmed earlier gains amid ongoing concerns about iPhone sales continue to haunt the company. For example, the major supplier Foxconn announced that it was going to cut costs sharply due to challenging market conditions.
Sector peers such as Amazon, Alphabet and Microsoft did made progress. Facebook ended 1.8 percent higher after the company appeals against a British privacy fine.
Steel and aluminum producers were also in the spotlight. World Trade Organization WTO is going to investigate the American import duties that have been in effect since this spring. US Steel, Century Aluminum and Alcoa were up almost 3 percent.
Foot Locker presented better than expected figures. The sports store chain jumped 15 percent. In the wake, peers like Nike and Under Armor went up 3.2 percent. The agricultural machinery manufacturer Deere gained 2.4 percent after numbers.