Why Is NIO Stock Down 5% Today?
Nio (NYSE:NIO) stock is taking a beating on Friday as Chinese stocks continue to deal with ongoing Covid-19 pressures.
Chief among these pressures are increased lockdowns coming to cities across China in accordance with the country’s zero-Covid policy. The policy is the work of current President Xi Jinping, who recently took office for a third term. Xi Jinping’s reelection and stance on Covid-19 is causing some concerns about the future of NIO stock and other Chinese stocks.
President Xi Jinping has remained stalwart in his battle against Covid-19. It doesn’t look like he’ll be backing down any time soon, either. Investors should also note that the president’s third term is a result of China’s two-term limit being abolished back in 2018.
What Do the Experts Think?
Of course, there are two sides to this news. Some think China will keep its Covid-19 policy intact, but others expect restrictions to eventually ease. Mark Mobius is among the latter, predicting that China could lift restrictions by the end of the year. Mobius says the government “needs money badly” and can’t sustain the lockdowns.
Until that happens officially, though, NIO stock will continue to face volatility. While shares might recover slightly in the coming days, all it will take is more lockdown talk for the stock to slip again.
NIO stock is down 5% as of Friday morning and down more than 70% since the start of the year.
Investors seeking out more of the latest stock market news are in luck!
InvestorPlace has all of the hottest stock news traders need to know about on Friday! Among that is what has shares of Cardio Diagnostics (NASDAQ:CDIO), XPeng (NYSE:XPEV) and AMC Entertainment (NYSE:AMC) stock moving today. You can catch up on all of that at the following links!
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On the date of publication, William White did not hold (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.