NIO Inc. NIO shares are lower Thursday amid overall weakness in Chinese stocks on U.S. rate hike concerns. Furthermore, Tesla TSLA and sixteen Chinese automotive companies have entered into an agreement to prevent a price war.
What To Know: The four point pledge focused on ensuring equitable competition and averting "unusual pricing" practices, according to a Bloomberg report.
The news is welcome for the biggest EV market which has been beset by a price war this year, which began when Tesla started cutting prices in China.
The agreement was overshadowed Thursday by the overall market downturn due to increased likelihood of the Federal Reserve raising interest rates further during the remainder of this year. The resilient jobs market, despite the Fed's aggressive rate hike cycle, is the root cause.
According to the ADP National Employment Report, U.S. private employers outpaced expectations by adding 497,000 jobs in June, rising above the estimated 220,000.
As a result, the odds of a 0.25% interest rate hike in July soared over 90%, according to the CME FedWatch tool. The non-farm payrolls report is scheduled for release on Friday morning, drawing everyone's attention next.
Related Link: Piper Sandler Downgrades HubSpot, But Raises Price Target Amid Robust Growth
NIO Price Action: Shares of NIO were down 6.12% at $9.60 at the time of publication, according to Benzinga Pro.
Image by Mikes-Photography from Pixabay
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