S&P shaky; Nikola up and down after GM partnership – Detroit Free Press

The S&P 500 continued its shaky start to September by trading lower in a holiday-shortened week on Wall Street.

Shares of electric truck maker Nikola surged on Tuesday after General Motors announced it is taking an 11% stake in the company. Under the terms of the partnership, GM will be manufacturing Nikola’s Badger pickups, which are expected to hit the market by the end of 2022. Nikola gave up most of those gains on Thursday after short seller Hindenburg Research accused the company of being an “intricate fraud.”

While Nikola and GM shares gained ground, EV competitor Tesla’s stock dropped more than 7% after S&P chose not to add the volatile stock to the S&P 500 index. Tesla became eligible for inclusion in the S&P 500 after reporting a profitable second quarter, but S&P chose Etsy, Catalent and Teradyne to join the index over Tesla.

On Wednesday, billionaire hedge fund manager Stanley Druckenmiller told CNBC that the stock market is in “an absolute raging mania.” Druckenmiller said the Federal Reserve’s stimulus measures have inflated stock valuations and “the next three to five years are going to be very, very challenging” for investors.

AstraZeneca shares traded lower last week after the company announced it is suspending late-stage trials of its coronavirus vaccine candidate due to a study participant suffering a “potentially unexplained illness.”

Slack Earnings Disappoint

Workplace communications software stock Slack dropped nearly 20% after the company failed to report a second-quarter spike in revenue growth Tuesday, despite a large-scale shift to remote workplaces due to the coronavirus crisis.

This week, investors will shift their attention to earnings