Solid-state battery company QuantumScape (NYSE:QS) had a rough day following an unfortunate November jobs report. QS stock closed down 10% today as part of a greater market slump. Electric vehicle (EV) stocks in particular are in the red after an otherwise solid month for the sector.
What’s going on with the battery maker?
QuantumScape is likely an unfortunate casualty after a pessimistic jobs report today that has several sectors running cold. Today the U.S Department of Labor shared jobs data that fell short of expectations. In the month of November, non-farm jobs rose 210,000, a far cry from the 573,000 jobs expected for the month.
This comes as five states report detecting the omicron variant that is posed to reap dramatic effects on the world economy. Some analysts expect market volatility until more information is available related to the new variant.
What else is pushing QuantumScape down?
QS Stock Hit By EV Downtrend, Will It Rebound?
QS isn’t the only electric vehicle or related company hurting today. Lithium Americas (NYSE:LAC), Blink Charging (NASDAQ:BLNK) and Fisker (NYSE:FSR) all closed down at least 7% today. EV companies in particular have taken a turn for the worse, after a series of high-profile EV names inflated the industry this month. Rivian (NASDAQ:RIVN) in particular brought in a massive influx of EV interest after its IPO delivered record gains. Rivian was also unable to avoid the downswing, closing down 5.5% today.
Another negative force rearing its ugly head is inflation. With the Federal Reserve expected to raise interest rates in 2022, inflation continues to operate at elevated levels. Plus, Fed Chair Jerome Powell mentioned the possibility of an accelerated tapering schedule earlier this month.
All together, it’s an unfortunate string of news for QuantumScape this week as market forecasts seem weary. Investors should take some comfort in the fact nothing company-specific appears to be at play.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.