US stocks were mostly lower Tuesday, with the Nasdaq losing more than 2%. Tesla shares dipped below their S&P 500 inclusion price and moved closer to flashing a death cross. Billionaire Bill Ackman said markets are imploding as investors lose confidence in the Fed. Loading Something is loading.
US stocks closed mixed Tuesday and the Nasdaq shed more than 2% as the tech sell-off continued after Snap’s plunge.
Shares of the social platform dropped more than 43% after it warned of a slowdown in digital advertising as well as a drag on hiring.
Meanwhile, the Dow reversed course and ended higher, while the S&P 500 continued to hover near bear market territory as it sits about 18.5% lower from its most recent high.
Here’s where US indexes stood as the market closed 4:00 p.m. on Tuesday:
S&P 500: 3,942.21, down 0.79% Dow Jones Industrial Average: 31,931.06, up 0.16% (50.82 points)Nasdaq Composite: 11,264.45, down 2.35%Facebook parent Meta erased $53 billion in market value Tuesday after Snap’s downward spiral ripped social media stocks and digital advertising companies .
Tesla’s stock is trading below its S&P 500 inclusion price and on the verge of flashing a bearish death cross. Wedbush’s Dan Ives called Musk’s bid to takeover Twitter a “circus show” that has dragged on Tesla’s share price.
According to Jefferies analysts, small-cap stocks are showing signs of a coming recession , so investors should stick to cyclical names to make it through the bear market.
In a series of tweets, billionaire investor Bill Ackman said markets are imploding because investors don’t have confidence in the Fed’s ability to stop inflation.
“Inflation is out of control,” Ackman tweeted Tuesday. “There is no prospect for a material reduction in inflation unless the Fed aggressively raises rates, or the stock market crashes, catalyzing an economic collapse and demand destruction.”
Bridgewater’s Ray Dalio, meanwhile, said “cash is trash” but stocks are even worse amid the Fed’s battle to lower record-high inflation.
The European Central Bank warned that crypto’s growth within traditional institutions will create contagion risk that could threaten broader financial stability.
“As this is a global market and therefore a global issue, global coordination of regulatory measures is necessary,” the bank added.
Oil prices were mixed, with West Texas Intermediate down 0.27% to $109.99 a barrel. Brent crude, the international benchmark, moved up 0.19% to $113.61 a barrel.
Gold edged higher 0.97% to 1,865.20 per ounce. The 10-year yield dipped 0.096 basis points to 2.959%.
Bitcoin climbed 0.57% to $29.402.65.
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