Nasdaq sinks 4% to lowest since Dec. 2020 ahead of key tech earnings and as investors weigh threat of a global economic slowdown
Johnathan Kirn/Getty
- The Nasdaq plunged 4% Tuesday as investors looked ahead to key after-hours tech earnings.
- The three major indexes are all on track for losing months, with the Nasdaq more than 20% of its high.
- Morgan Stanley's Mike Wilson predicted that the S&P 500 will enter a bear market within weeks.
US stocks plunged Tuesday, continuing April's market sell-off, as investors weighed concerns of a global economic slowdown.
The Nasdaq led the sell-off, hitting the lowest level since December 2020, as the major US indexes head for a losing month. China's resurgent COVID-19 lockdowns and some mixed earnings reports are stirring more concern over global growth.
Tech stocks slipped Tuesday, as investors anticipate the results of Alphabet and Microsoft's first-quarter earnings after the close. Shares of the two technology giants moved lower along with those of Meta, Amazon, and Apple, which are also scheduled to report later this week.
Here's where US indexes stood as the market closed 4:00 p.m. on Tuesday:
- S&P 500: 4,175.17, down 2.82%
- Dow Jones Industrial Average: 33,240.31, dow 2.38% (809.15 points)
- Nasdaq Composite: 12,490.74, down 3.95%
General Electric fell to a 17-month low after its first-quarter earnings report revealed the company was hit by supply-chain snags and inflation. The stock fell as much as 13% on the day.
Electric vehicle maker Tesla also dropped roughly 11% Tuesday, as competitor Ford announced plans to scale up production of its electric F-150 amid huge demand.
Morgan Stanley's US equity strategist Mike Wilson said that the S&P 500 is set to fall sharply and enter a bear market within weeks. The primary market driver is slowing growth, rather than inflation or interest rates, he said.
Meanwhile, the US has super-sized its crude oil deliveries to Europe to help replace missing Russian supply. At the same time, Russia's largest state-run oil producer failed to sell 37 million barrels of crude oil.
Oil climbed higher, with West Texas Intermediate up 3.25% to $101.79 a barrel. Brent crude, the international benchmark, rose 2.81% to $105.13 a barrel.
Gold rose 0.31% to $1,901.60 per ounce. The 10-year yield fell 7.8 basis points to 2.749%.
Bitcoin fell 4.8% to $38.265.68.
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