Nio Stock Forecast: NIO sells off on surprise inflation print

Share:

• NIO stock has stalled out near $9, right at the 21-day simple moving average.
• September US CPI report showed a slight pickup in headline inflation. 
• Nio stock is having difficulty recovering from a 17% plunge following its decision to raise $1.5 billion from convertible bonds.
• Equity futures including the NASDAQ 100 advanced 0.4% prior to the CPI release but lost half their gains after inflation arrived above consensus.
• US Treasury yields rose on the back of higher headline inflation, with the 2-year gaining more than 1%.

Nio (NIO) stock trades 2.5% lower at the beginning of Thursday’s regular session. NNIO appears stuck below the $9 price level, close to the 21-day Simple Moving Average (SMA). Initially, NIO shares advanced close to 1% before the market opened, but the September Consumer Price Index (CPI) read on inflation was higher than expected.