Flight Path

US stock market report – Tesla (TSLA) drops on staff cuts

The bullish streak in US stock markets couldn't last more than a week, as all three US benchmarks fell on Friday.

The technology sector was the greatest loser, with Tesla (NASDAQ: TSLA) leading the way with a 9.2 percent drop. As a result, the Nasdaq plummeted 2.5 percent


Flight Path

while the S&P 500 and Dow Jones fell 1.6 percent and 1.1 percent, respectively, as energy companies benefited from the rising oil price.

Tesla's worries and escalating rhetoric

The Dow Jones dropped 0.9 percent this week, the S&P 500 dropped 1.2 percent, and the Nasdaq dropped 1%.

Tesla's drop on Friday looks to be fueled by statements from CEO Elon Musk, who announced a recruiting freeze and a 10% 

Flight Path

reduction in employees throughout the company, the latest in a string of job cuts in the tech industry.

Flight Path

Despite the fact that US payrolls exceeded predictions, with experts forecasting 328k new jobs, 380k were taken, the comments were made.

American Airlines upgrades its outlook, according to Lululemon. On the plus side, sportswear company Lululemon (NASDAQ: LULU) dipped just 0.6 percent 

Musk also stated he has a "very awful feeling" about the economy, echoing JP Morgan CEO Jamie Dimon's use of hyperbole when he spoke of a "economic cyclone."

Economic cyclone

Flight Path

On the plus side, sportswear company Lululemon (NASDAQ: LULU) dipped just 0.6 percent 

after reporting a 32 percent increase in revenue, but warned that supply chain and inflation concerns remained.

American Airlines' (NASDAQ: AAL) stock dropped more than 7% after the firm raised sales guidance but warned that higher energy costs would hurt profits.

The S&P/ASX 200 (ASX: XJO) is projected to open lower this morning on the ASX, following the bearish lead set by US stock markets.