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Dow Off 300, Tesla Rival Rallies

John Divine

A day after the S&P 500 broke back into positive territory on the year, stocks ceded some ground on Tuesday. The broader market did, at least.

While both the benchmark S&P 500 and the Dow fell on the day, the tech-heavy Nasdaq rose again as one of the defining Wall Street trends of 2020 continued: Silicon Valley has proven time and time again to be one of the most resilient corners of the market.

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The Dow Jones Industrial Average finished the day down 300 points, or 1.1%, to close at 27, 272 on Tuesday.

Risk-on, risk-off. It's hard to believe, but stocks have been rallying for months now. Fresh off a controversial Friday morning jobs report -- May's labor market was far better than expected but the unemployment rate was still higher than the 13.3% initially reported -- markets had been showing a high appetite for risk heading into Tuesday.

While Monday saw shares in many of the market's most suspect names rally more than 10%, it was a different story on Tuesday. Shares of Norwegian Cruise Line Holdings (ticker: NCLH), one of 2020s most volatile names in the S&P 500, lost 10.2% after tacking on about 20% for no clear reason just a day before.

Move over Tesla, it's ... Nikola's turn? You can't make this up: Shares of electric vehicle maker Nikola Corporation, (NKLA) which in stark contrast to Tesla ( TSLA), opted to take the first name of the famous inventor, rose nearly 9% Tuesday.

That's a tidy one-day gain by most investors' standards, but Nikola shares had rallied by more than 100% on Monday as its CEO took to Twitter to announce a late-June reservation date for its "Badger" zero-emission truck, a hybrid that will use both hydrogen fuel cells and batteries to run.

Although the company doesn't expect to generate its first real sales until a 2021 release, investors seem to think Nikola has already earned a multibillion-dollar valuation.

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