U.S. stock indexes were lower on the back of a wave of earnings reports from big tech and blue-chip companies, as investors worried about slowing growth.
The S&P 500 index fell 1.9% in Tuesday morning trading. The Dow Jones Industrial Average fell 1.4%, while the tech-heavy Nasdaq Composite lost 3.1%. Nine out of 11 S&P 100 sectors are in the red, with consumer and technology stocks among the top losers.
Inventory close higher on Monday, led by tech stocksafter
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Elon Musk. The Nasdaq composite was up 1.3%, while the S&P 500 was up 0.6%.
The yield on the 10-year US Treasury note fell from 2.825% to 2.728% on Monday. Yields on benchmark bonds remain close to their highest levels since 2018 as investors sold bonds in anticipation of higher yields. Bond yields increase when prices fall.
In earnings news,
down more than 10% after warning that supply chain disruptions would Its business pressure this year.
down more than 3%. The company said quarterly revenue was up more than 6%, even though it shipped fewer packages compared to the previous quarter. 3M, which reported better-than-expected first-quarter sales, fell 3%.
Google’s Parents
GOOG -3.19%
and
is set to report earnings after the market closes.
Fear of the revival of Case of Covid-19 in China, and the strict lockdown measures put in place to combat the outbreak there, have heightened investors’ concerns about the global economy and made trading volatile in recent sessions. this. Soaring inflation is weighing on companies and consumers, while indications by the Federal Reserve that it will quickly tighten monetary policy threaten to stifle growth.
“We are in a tightening cycle around the world and so we have to get rid of many of these assets,” said Mace McCain, chief investment officer at Frost Investment Advisors. investment director at Frost Investment Advisors said.
Assets seen as havens in tough times, such as Treasury bonds, are being pressured by inflation and expectations of tighter central bank policy along with equities, making complicating matters further for investors seeking shelter in recent volatile times. Gold, another haven, gained 0.6 percent on Tuesday, but prices remained near their lowest levels since February.
“We have had a beautiful outlook over the past 18 months: Growth is accelerating and bond yields falling – the perfect combination,” said Hani Redha, a portfolio manager at PineBridge Investments. for risky assets”. “Now we’re the complete opposite.”
The Federal Reserve’s main tool for managing the economy is to change the federal funds rate, which can affect not only the cost of borrowing money for consumers, but also decisions. broader of companies like how many people to hire. The WSJ explains how the Fed manipulates this one rate to guide the economy as a whole. Illustration: Jacob Reynolds
“Inflation is really enemy number one for financial markets. It’s painful for your risky assets and it’s painful for your safe-havens,” said Mr. Redha. “There are very few places to hide.”
Brent crude futures rose 0.7% to $102.86 a barrel. The international oil benchmark fell below $100 a barrel on Monday before rebounding. The price of U.S. benchmark oil, known as West Texas Intermediate, rose 0.7 percent to $99.24 a barrel on Tuesday.
On economic news, US consumer confidence eased slightly in April, the Conference Board said on Tuesday. Orders for durable goods — consumer products designed to last more than three years — rebounded in March after a weak February.
The S&P CoreLogic Case-Shiller National Home Price Index, a measure of median home prices in major US metropolitan areas, up 19.8% year on year ended in February, up from 19.1% year-on-year the previous month. Higher prices and rising mortgage rates are expected to affect home sales this year. The Commerce Department said on Tuesday it said new home sales fell 12.6% in March from a year ago.
Overseas, the Stoxx Europe 600 rose 0.1%.
shares in London fell nearly 3% after reporting a quarterly profit reduction.
In mainland China, the Shanghai Composite Index fell 1.4%, lower for a second straight day as investors continued to worry about the threat of a new Covid-19 lockdown. The The People’s Bank of China announced that it will step up support for the economy Tuesday in an attempt to ease jitters, but the move had only a temporary effect on local markets.
Traders worked on the floor of the New York Stock Exchange on Monday.
Photo:
Spencer Platt / Getty Images
John Woods, Investment Director, Asia Pacific at
Refers to Chinese stocks.
Elsewhere in Asia, Tokyo’s Nikkei 225 gained 0.4%, while South Korea’s Kospi gained 0.4%. Hong Kong’s Hang Seng Index rose 0.3%.
—Rebecca Feng contributed to this post.
Write to Will Horner at [email protected] and Orla McCaffrey at [email protected]
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