A sea of red swept across Wall Street on Tue. Equities reversed Mon’s short-covering rally. The tech-heavy Nasdaq Composite plunged nearly 4%.
The Dow Jones Industrial Average lost 809.28 pts, or 2.38%, to close at 33,240.18. The broader S&P 500 index fell 2.81%. The tech-heavy Nasdaq Composite retreated 3.95%. The small-cap Russell 2000 dropped 3.26%. Mega cap tech stocks ended lower, including Apple (AAPL US, -3.73%), Microsoft (MSFT US, -3.74%), Amazon (AMZN US, -4.58%), Alphabet (GOOGL US, -3.59%), NVidia (NVDA US, -5.6%), and Meta Platforms (FB US, -3.23%).
The S&P 500 Consumer discretionary sector (S5COND, -4.99%) was weighed down by Tesla (TSLA US, -12.18%). Investors are concerned that Elon Musk may sell shares to complete his $44b takeovers of Twitter (TWTR US, -3.91%).
After the market closed, Microsoft reported quarterly sales and earnings that topped analysts’ projections, fueled by robust growth in cloud-services demand. Microsoft shares rose 4.47% in after-hours trade on Tue.
Alphabet fell a further 2.55% in after-hours trade on Tue after its quarterly revenue missed expectations, with YouTube's ad revenue growth proving a disappointment. YouTube may be losing market share to TikTok.
The US dollar strengthened against every G-10 peer save the yen. The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, rose 0.54% to 102.303.
The euro fell 0.7% to US$1.0638, the weakest it has been for five years versus the greenback. The Singapore dollar is the strongest it has ever been versus the euro. One euro equals S$1.4667.
The 10-year Treasury note yield slipped 9.93 basis points (bps) to 2.7205%. The front-month Brent and WTI futures closed up $2.67 at US$104.99/bbl and $3.16 at US$101.70/bbl respectively.
The most actively traded US gold futures (Jun) contracts settled up $8.10, or 0.4%, at US$1,904.10/oz. May silver, which is the most actively traded silver futures, fell 12.6 cents, or 0.5%, to end at US$23.544/oz.
Cryptocurrency-linked stocks retreated after Bitcoin (XBTUSD) plunged 5.13% to US$38,123.53 on Tue, the lowest in six weeks.
European equity markets finished mixed on Tue. The UK FTSE gained 0.08%, France's CAC 40 fell 0.54%, while the German DAX retreated 1.20%.