Why Nio Popped, Dropped, Then Popped Again on Tuesday
Many Chinese growth stocks have been volatile in recent weeks as the country went from a restrictive "zero-COVID" policy to an abrupt reopening. Chinese electric vehicle (EV) maker Nio (NYSE: NIO) was one of those, taking some notable swings in value over the past couple of months.
The company's American depositary shares maintained that volatile behavior in Tuesday's trading session. After spiking by nearly 6% early, Nio stock slid briefly into the red, then recovered to a gain of 3.3% as of 3:30 p.m. ET. That latest rebound may be due to some recent EV sales data out of China.
Tuesday's volatility is emblematic of the uncertainty investors are feeling about China's economic outlook. But whether the reopening will result in a positive trend in consumer spending remains to be seen.
Source Fool.com
