Why Is Nio (NIO) Stock Down 5% Today?
Nio (NYSE:NIO) stock is falling on Thursday as Chinese stocks continue to see volatility following President Xi Jinping securing a third term.
President Xi has been strictly enforcing Covid-19 lockdowns that have continued to hurt the Chinese economy. The President has suggested that these lockdowns will continue as the country’s government takes swift action to combat the virus.
The big news affecting Nio today is major cities in China seeing additional lockdowns. Wuhan and several other Chinese cities are reportedly going into new lockdowns as part of Xi’s Zero Covid policy.
What This Means for NIO Stock
Nio, as well as other Chinese companies, will likely continue to see volatility thanks to the lockdowns. These will cause problems for supply chains, which will in turn harm production and earnings.
The electric vehicle (EV) sector has already been feeling this with chip shortages affecting stocks over the last couple of years. That’s due in part to lockdowns that kept workers from factories.
NIO is also seeing strong trading today with investors selling off shares. As of this writing, more than 44 million shares have changed hands. That’s quickly approaching its daily average trading volume of about 48 million shares.
NIO stock is down 4.7% as of Thursday morning and is down 69.4% since the start of the year.
Investors seeking out more of the latest stock market news are in luck!
We’ve got all of it ready to go with the most recent stock news for Thursday! That includes what’s going on with shares of Ford (NYSE:F) stock, ContextLogic (NASDAQ:WISH) stock, and ServiceNow (NYSE:NOW) stock today. You can catch up on all of that at the following links!
More Thursday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.