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Why is NIO stock up 8% today?

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Shares of Nio (NYSE:NIO) are up on the day, with NIO stock up around 8% on Monday. He held those gains for most of the session. The move comes on top of Friday’s gain as shares soared more than 3% in the previous session.

Helping Nio Monday is a multi-pronged catalyst.

First, there is a bid on tech stocks in general and EV stocks in particular. You’re here (NASDAQ:TSLA) is up around 4% on the day and reaching session highs. Lucid Engines (NASDAQ:LCID), Fisker (NYSE:FSR) And Rivian (NASDAQ:SHORE) are all significantly higher as well.

Even more specifically, Chinese electric vehicle stocks like Li-Auto (NASDAQ:LI) And Xpeng (NYSE:XPEV) are also in place during the day.

This brings us to the second catalyst: China.

THE iShares China Large Cap ETF (NYSEARC:FXI) rebounded almost 2% on Monday. It’s that the People’s Bank of China (or PBOC) kept its benchmark lending rate unchanged as the “market sees [a] reduced reserve rate as [the] next step.”

“The one-year loan prime rate was flat at 3.65%, while the five-year LPR was flat at 4.3%. That’s when “several analysts expect Beijing to roll out monetary easing in the coming months to support the economy, as April data for retail sales, factory production and investment in fixed assets were all lower than expected”.

Can this give NIO Stock a spark?

When investors look at Monday’s price action in NIO stocks, these will be the catalysts – strong price action in tech and EV stocks alongside less aggressive monetary policies out of China.

If the PBOC does roll out monetary easing later this year, that should be an added benefit for Nio, not only in the direction of higher stock prices, but also in hopes of increased consumer spending. .

That said, it hasn’t been easy for Nio.

Earlier this month, NIO shares hit a 52-week low of $7.33 on May 2. While the stock is up around 20% from those lows, the rally has done little to improve investor sentiment.

NIO stock is down only 10% so far in 2023; at first glance, it doesn’t seem so bad. But the reality that stocks are down more than 60% from the one-year high is certainly disappointing. From an all-time high, shares fell more than 86%.

While the catalysts above are certainly helping NIO stock today, it will need more momentum to carry it higher. Ideally, the bulls are looking for a move north of $10 to get more excited.

As of the date of publication, Bret Kenwell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.


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