US stocks fall as investors brace for wave of mega-cap tech earnings
Spencer Platt/Getty
- US stocks dipped Tuesday following a big rebound in the previous session led by tech stocks.
- Investors are waiting on key earnings from Alphabet, Microsoft, Visa, and others.
- Wedbush's managing director said Musk's Twitter purchase was completed at a fair price, and that the billionaire paid a premium.
US stocks slipped Tuesday following Monday's gains. Investors were eagerly awaiting a wave of corporate earnings from key tech companies including Microsoft and Alphabet.
Stocks staged a big rebound to close higher Monday, led by tech shares. Among those was Twitter, which jumped 5.6% as Elon Musk closed on his $44 billion purchase of the social media platform.
China continues to grapple with a new wave of COVID-19 cases, and cities are facing stringent COVID-19 lockdowns. Beijing pledged to support the faltering economy, but growth fears have been weighing on investors amid recession warnings across the globe.
Here's where US indexes stood as the market opened 9:30 a.m. on Tuesday:
- S&P 500: 4,264.08, down 0.75%
- Dow Jones Industrial Average: 33,881.10 down 0.49% (168.36 points)
- Nasdaq Composite: 12,836.34, down 1.3%
On Monday, Wedbush's managing director Ygal Arounian said Musk's $44 billion Twitter buyout is more than a fair deal. He noted that he expects the social platform's earnings to show signs of weakness in the advertising market.
The "Big Short" investor Michael Burry, for his part, applauded Musk's Twitter deal.
In digital assets, Fabio Panetta, a top ECB official, called for a global crackdown on the crypto market to prevent a "lawless frenzy." He said that, if left unregulated, the market could pose a risk to financial stability.
Former New York Fed President Bill Dudley meanwhile, said that slow-moving crypto regulation puts the market at a greater risk of an "innovation-killing crackdown."
Oil inched higher, with West Texas Intermediate up 1.13% to $99.66 a barrel. Brent crude, the international benchmark, rose 1.27% to $103.65 a barrel.
Gold climbed 0.59% to 1,907.30 per ounce. The 10-year yield fell 8.4 basis points to 2.743%.
Bitcoin rose 0.12% to $40.210.68.
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