Shares of electric and clean energy vehicle companies, including Lucid Group Inc (NASDAQ:LCID), Rivian Automotive Inc (NASDAQ:RIVN) and NIO Inc (NYSE:NIO), are trading lower Tuesday afternoon amid a continued market sell-off as concerns over Fed policy tightening continue to pressure growth names.
Investors have been anticipating that the Federal Reserve will start hiking interest rates and reducing the amount of bonds it buys each month. It's also expected that the central bank will begin to cut the nearly $9 trillion in assets it's holding.
The December meeting summary showed that Fed members are ready to start raising interest rates and tapering bond buying. The Fed also signaled that it's prepared to engage in conversations about reducing holdings of Treasurys and mortgage-backed securities.
Those conversations will likely ramp up in this week’s meeting. The FOMC decision is due at 2 p.m. ET tomorrow and will be followed by a press conference with Fed chairman Jerome Powell.
The 10-year U.S. Treasury yield was at 1.785% at publication time. Rising yields seem to be impacting valuations for recent EV market entrants.
See Also: Why IBM Shares Are Rising Today
LCID, RIVN, NIO Price Action: Lucid was down 5.43% at $35.70, Rivian was down 6.47% at $59.79 and Nio was down 3.46% at $24.01 Tuesday afternoon.
Photo: stanvpetersen from Pixabay.
