Tesla and Nvidia Fall as Ukraine and Russia Trade Ceasefire Violations Accusations

Markets around the world tumble

Image of NVIDIA sign
Image of NVIDIA sign.

Shares of Nvidia Inc. (NVDA) are down 7% despite beating expectations and reporting strong Q4 earnings yesterday. Fresh hostilities in Eastern Europe surfaced, pushing stocks around the world lower while gold and other safe-haven investments rose.

Tesla (TSLA) shares are also down 5% as Consumer Reports named Ford Motor Co.'s (F) Mustang Mach E as the top electric vehicle, replacing Tesla's Model 3. Nvidia slipped after saying chip sales to automakers declined.

Key Takeaways

  • Markets around the world slumped as Ukraine blamed a missile strike on Russian separatists, who in turn accused Ukraine of ceasefire violations.
  • Gold rose as investors bought safe-haven investments
  • Tesla and Nvidia fell, while DoorDash soared after saying revenue gained even while restaurants reopened.

The Dow Jones, S&P 500, and Nasdaq were each down more than 1%. European stocks also fell as Ukraine blamed a missile strike on Russian separatists, who in turn accused Ukraine of ceasefire violations as the Eastern Europe situation grew more uncertain.

The sell-off is broad-based, with shares of banks, big industrial firms, and tech companies all declining. 

Investors are in a flight to safety, pulling money out of equities and putting it into traditional havens such as bonds and gold. The yield on the 10-year Treasury note, which moves inversely to price, is down to 1.96%. Gold futures are up more than 1% to their highest level since June.  

Nvidia (NVDA) shares are down on the chipmaker’s guidance. Shares of Sealed Air Corp. (SEE) are falling after the company’s profit missed estimates. 3M Co. (MMM) shares are dropping following an analyst downgrade.

Cisco Systems and Walmart

Shares of Cisco Systems Inc. (CSCO) are rising on the network equipment maker's profit, forecast, and expanded stock buyback plan. Walmart Inc. (WMT) shares are up on the retailer’s better-than-expected earnings. Shares of DoorDash Inc. (DASH) are jumping after the delivery company reported continuing high demand (more below). 

Oil prices are falling 2% as the U.S. indicates talks with Iran over a new nuclear agreement are in their final stages. Bitcoin, Ether, and other major cryptocurrencies are trading lower. 

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Chart of the Day: Stopping Starts

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Housing starts and completions in the U.S. fell in January as builders continue to struggle to get materials because of supply-chain constraints. However, building permits rose to the highest level in more than 17 years.  

The Census Bureau reported housing starts came in at an annual rate of 1.64 million last month, a 4.1% decline from December’s revised 1.71 million and below economists’ forecasts. Starts for single-family homes slid 5.6%. 

Housing completions were also down 5.2% to an annual rate of 1.25 million, with single-family home completions sinking 7.3%. 

Building permits increased to an annual rate of 1.9 million, 0.7% more than the month before and above estimates. That was the largest number of permits since May 2006. Permits for single-family homes shot up 6.8%. 

Stock of the Day: DoorDash Inc. (DASH)

DoorDash shares are gaining after the home delivery company exceeded expectations in several metrics in the fourth quarter, and said the demand for deliveries that boomed during the peak of the COVID-19 lockdowns is not dissipating. 

DoorDash reported Q4 total orders increased 35% to 369 million, while the gross order value gained 36% to $11.2 billion. Both were record highs. Revenue rose 34% to $1.3 billion. All were above analysts’ forecasts. 

The company also set a record for monthly active users (MAU) with more than 25 million, a 22% increase from the year before.  

No Drop in Demand

DoorDash noted its growth in 2021 exceeded its expectations and “the expectations of many who questioned the sustainability of demand as restaurants reopened” after pandemic restrictions eased. The company added it believes the transition to omni-channel local commerce is “in its early innings,” and DoorDash is just starting to build the platform it envisions. 

Shares of DoorDash are up more than 8% today, but they’re down 52% in the past year.

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