20Gauge
TB Fanatic
Dow slides 473 points as Nasdaq mounts comeback
U.S. equity markets traded lower Tuesday afternoon as technology and growth stocks pared their losses after falling sharply in early trading amid continued worries over inflation and what it might mean for Federal Reserve policy.
www.foxbusiness.com
U.S. stock futures were under pressure Tuesday morning as the sell-off in technology and growth stocks continued on inflation concerns.
Nasdaq 100 futures were trading lower by 1.32% while S&P 500 futures and Dow futures were weaker by 0.41% and 0.44%, respectively. All three of the major averages declined Monday with both the S&P 500 and the Dow slipping off record highs as the tech-heavy Nasdaq lost more than 2.5%.
The latest report on consumer prices is due out Wednesday.
In stocks, mega-cap technology stocks including Alphabet Inc., Amazon Inc., Apple Inc., Facebook Inc. and Microsoft Corp. all fell by more than 1% in early trading.
Those companies are teaming up with chipmakers including Advanced Micro Devices Inc., Intel Corp. and Nvidia Corp. to form a new lobbying group seeking chip manufacturing subsidies amid the global shortage.
Elsewhere, Tesla Inc. shares declined after Reuters reported the electric-car maker has paused plans to expand its Shanghai factory due to uncertainty caused by tensions between the U.S. and China.
In earnings, Virgin Galactic Holdings Inc. shares were sharply lower after the space explorer said it was evaluating the timing of its next test flight which was originally scheduled for this month. The company reported an adjusted EBITDA loss of $55.9 million, down from a loss of $59.5 million in the prior three months, on zero revenue.
Mall operator Simon Property Group Inc. raised its earnings forecast for the current fiscal year but said occupancy will not return to 2019 levels until 2023.
L Brands Inc. will spin off its Victoria’s Secret brand after previously considering a sale. The deal, which will separate Victoria’s Secret and Bath & Body Works, is expected to close in August.
In commodities, West Texas Intermediate crude oil fell 40 cents to $64.52 per barrel while gold ticked up $3 to $1,840.60 per barrel.
Overseas markets were under significant pressure.
European markets were lower across the board with Germany’s DAX 30 tumbling 2.31%, Britain’s FTSE 100 losing 2.23% and France’s CAC 40 declining 2.15%.
In Asia, Japan’s Nikkei 225 plunged 3.08% and Hong Kong’s Hang Seng index slid 2.03% while China’s Shanghai Composite edged up 0.4%.
