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Tesla Dip Puts Equities on Backfoot

EQUITIES
  • Wall Street traded lower Tuesday, with headline indices dipping around 0.5%, led lower by a sharp pullback in Tesla shares, which dropped as much as 10%. The automaker slipped sharply within 10 minutes of the cash open, the largest intraday decline in 8 months.
  • Weakness came alongside large selling in Tesla share blocks at the market open, giving way to large S&P emini futures selling volumes.
  • Tesla's drop prompted automakers and consumer discretionary to lead declines in the S&P 500, with financials and tech not far behind. The moves follow the weekend's news that Tesla CEO Musk said he'd sell a 10% stake in the company after a Twitter poll on the subject.
  • European markets gave up an early lead, with the UK's FTSE-100 leading declines, slipping 0.4% into the close.

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