US technology shares saw a sharp sell off on Tue, as investors worried that the Fed’s tighter monetary policies could plunge the US into a recession.
A 43.08% plunge in Snap (SNAP US, -43.1%) added fuel to the fire after the social media firm warned it would miss 2Q financial targets amid eroding economic conditions. Social media stocks lost more than $160b in market value.
The tech-heavy Nasdaq Composite retreated 2.35%. The broader S&P 500 index fell 0.81%. The Dow Jones Industrial Average gained 48.38 pts or 0.15% to close at 31,928.62. The small cap Russell 2000 dropped 1.56%.
Megacap tech stocks fell on Tue, including Apple (APPL US, -1.92%), Microsoft (MSFT US, -0.40%), Amazon (AMZN US, -3.21%), Alphabet (GOOGL US, - 4.95%), NVidia (NVDA US, -4.40%), and Meta Platforms (FB US, -7.62%).
The yield on the 10-year Treasury note slipped 10.08 basis points (bps) to 2.7506%, while the yield on the 2-year Treasuries fell 14.17bps to 2.4787%.
The iShares iBoxx High Yield Corporate Bond ETF (HYG US) rose 0.6%.
The front-month Brent and WTI futures closed up 14 cents at US$113.56/bbl while the WTI futures fell 52 cents at US$109.77/bbl on Tue.
The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.21% to 101.857.
The most actively traded US gold futures (Jun) contracts settled up $17.30, or nearly 1.0%, at US$1,865.40/oz. July silver, which is the most actively traded silver futures, rose 34 cents, or 1.6%, to end at US$22.063/oz.
European equity markets finished lower on Tue. The UK FTSE lost 0.39%, France's CAC 40 fell 1.66%, while the German DAX retreated 1.80%.