Wall Street falls but Tesla soars

Wall Street falls but Tesla soars

U.S. stocks ended lower on Friday, pulled down by uncertainty around a coronavirus stimulus deal, while Tesla shares hit a lifetime high in anticipation of their addition to the S&P 500 next week.

Fred Katayama reports.

Uncertainty over a coronavirus stimulus deal dragged down stocks on Wall Street Friday.

Trading was unusually heavy as investors and fund managers rushed to buy shares of Tesla ahead of the electric car maker’s addition to the S&P 500 index Monday.

Tesla shares rose nearly 6% to an all-time high.

Mercadien Asset Management president Ken Kamen says its inclusion could subject index funds to wider price swings.

“Tesla's like four or five times more volatile than the S&P, you know, so they're now going to add something in there.” The Nasdaq ended Friday just below breakeven.

The S&P and Dow fell roughly four-tenths percent.

Investors grew anxious as Congress looked increasingly unlikely on Friday to meet a deadline to agree on a relief package.

Back on Wall Street, FedEx shares dropped.

The package delivery company’s quarterly profit nearly doubled but investors soured on the stock when FedEx declined to issue an earnings forecast for next year.

Microsoft helped drag down the S&P.

The software titan found malicious software in its systems related to the massive hacking campaign U.S. officials disclosed this week.