Aggressive selling in consumer and tech stocks sent Wall Street reeling on Tuesday. The Nasdaq led the slide, falling nearly 4%, and the Dow retreated more than 800 points.
For the Nasdaq, the decline took the index to its lowest level of 2022. The S&P 500 recorded its lowest finish since the first half March, ending just above it 2022 closing low. The Dow also hit its lowest mark since mid-March.
Looking at the day's preliminary closing numbers, the Nasdaq plunged 514.11 points to conclude trading at 12,490.74. The Dow Jones closed at 33,240.18, a decline of 809.28 points on the day. The S&P 500 dropped 120.92 points to 4,175.20.
Ten of the 11 S&P sectors finished lower. This was led by a 5% tumble in Consumer Discretionary and a 3.7% fall in Info Tech. Energy represented the only segment ending in the green, although it only eked out a fractional advance.
Megacaps showed significant as well. Tesla (TSLA) provided the vanguard of this retreat, with the EV maker lower by 12%.
Turning to the bond market, Treasury yields dropped during the session, with the U.S. 10-year yield down seven basis points down to 2.76%. The U.S. 2-year yield was off as well, falling 12 basis points to 2.52%.
At the same time, the DXY, an index tracking the U.S. dollar, surpassed $102. This marked its highest level in over two years, dating back to the beginning of the pandemic, Mar. 24, 2020.
Oil prices also shifted upwards. WTI crude broke back above the $100 per barrel marker, climbing 3% to reach a level around $102.
In economic news, durable goods orders in the U.S. came in at 0.8% in Mar. of 2022, slightly below the consensus of 1%. The numbers were an increase from the previous month's -1.7%.
As earnings season forges forward, GE (GE), JetBlue (JBLU) and UPS (UPS) were among the big names that reported earnings earlier in the day. Alphabet (GOOG)(GOOGL) and Microsoft (MSFT) are set to report after the close.
"The next two weeks mark the heart of earnings season, with 337 companies scheduled to report. We believe earnings will continue to handsomely top estimates. While investors might be distracted over the near term, eventually fundamentals should prevail." Credit Suisse stated in a recent note.
Kit Juckes of Societe Generale stated: "Pressure was building into the weekend, but yesterday morning’s stormy markets may have helped clear the air. The Chinese authorities seem to be trying to instill some stability into USD/CNY, bond yields have steadied for now and equity indices too, are finding a toehold."
See below the YTD performance chart of the S&P 500, Dow Jones, and the Nasdaq Composite.