A day after the S&P 500 broke back into positive territory on the year, stocks ceded some ground on Tuesday. The broader market did, at least.
While both the benchmark S&P 500 and the Dow fell on the day, the tech-heavy Nasdaq rose again as one of the defining Wall Street trends of 2020 continued: Silicon Valley has proven time and time again to be one of the most resilient corners of the market.
The Dow Jones Industrial Average finished the day down 300 points, or 1.1%, to close at 27, 272 on Tuesday.
Risk-on, risk-off. It's hard to believe, but stocks have been rallying for months now. Fresh off a controversial Friday morning jobs report -- May's labor market was far better than expected but the unemployment rate was still higher than the 13.3% initially reported -- markets had been showing a high appetite for risk heading into Tuesday.
While Monday saw shares in many of the market's most suspect names rally more than 10%, it was a different story on Tuesday. Shares of Norwegian Cruise Line Holdings (ticker: NCLH), one of 2020s most volatile names in the S&P 500, lost 10.2% after tacking on about 20% for no clear reason just a day before.
Move over Tesla, it's ... Nikola's turn? You can't make this up: Shares of electric vehicle maker Nikola Corporation, (NKLA) which in stark contrast to Tesla ( TSLA), opted to take the first name of the famous inventor, rose nearly 9% Tuesday.
That's a tidy one-day gain by most investors' standards, but Nikola shares had rallied by more than 100% on Monday as its CEO took to Twitter to announce a late-June reservation date for its "Badger" zero-emission truck, a hybrid that will use both hydrogen fuel cells and batteries to run.
Although the company doesn't expect to generate its first real sales until a 2021 release, investors seem to think Nikola has already earned a multibillion-dollar valuation.