Advertisment
The NASDAQ fell on Tuesday as fears from Snap’s bleak warning spread to other tech names, while the Dow Jones Industrial Average rallied into the close from its lows of the day.
The Dow Jones Industrials moved into the green 48.38 points to close Tuesday at 31,928.62.
The blue-chip stock index got a boost from UnitedHealth Group, which jumped 1.1% ahead of the close. Dow components McDonald’s, Verizon and IBM all added more than 2%.
The S&P 500 cratered 32.27 points to 3,941.48.
The NASDAQ Composite swooned 270.83 points, or 2.4%, to 11,264.45.
Shares of tech companies led the day’s losses as investors feared a slowdown in digital advertising following a warning from social media company Snap.
Its shares plummeted 43% after the company said it’s bracing to miss earnings and revenue targets in the current quarter and warned of a downturn in hiring. Meta Platforms followed Snap lower, falling 7.6%. Google-parent Alphabet dropped 5% and hit a new 52-week low.
Amazon also fell to a new 52-week low, and ended the day down 3.2%. Apple shed 1.9%.
The S&P 500 sits 18.2% from its record after falling more than 20% from its high at one point on Friday. The Dow’s losing streak is its longest since 1923.
Nordstrom and Urban Outfitters will report earnings after the bell. Best Buy shares initially popped after the company reported a mixed quarter but ended the day up just 1.2%.
Treasury prices leaped, lowering yields to 2.76% from Monday’s 2.86%. Treasury prices and yields move in opposite directions.
Oil prices docked 23 cents to $110.06 U.S. a barrel.
Gold prices gained $17.50 to $1,865.30 U.S. an ounce.
