Stocks closed broadly lower on Wall Street on Tuesday, weighed down by sharp declines in Big Tech stocks that also left the Nasdaq with its worst drop since September 2020.
Investors are busy reviewing the latest round of corporate earnings and are facing a particularly heavy week with results from some of the nation’s biggest companies. Earnings growth has been one of the pillars of the market, but the reports so far haven’t offset investors’ concerns about rising inflation, interest rate hikes and potential damage to global economic growth from pandemic-related lockdowns in China.
The S&P 500 fell 120.92 points, or 2.8% to 4,175.20. The benchmark index closed the day with 95% of its stocks losing ground. The Dow Jones Industrial Average fell 809.28 points, or 2.4%, to 33,240.18.
The tech-heavy Nasdaq bore the brunt of the day’s losses. It fell 514.11 points, or 4%, to
12,490.74. That’s its worst drop since Sept. 8, 2020. The index is now down 20% so far this year as investors shun the ultrapricey tech sector, which had made gangbuster gains for much of the pandemic.
With the Federal Reserve set to aggressively raise interest rates as it steps up its inflation fight, traders are less and less willing to endure the lofty prices they had been paying for Microsoft, Facebook’s parent company and other tech giants.
Microsoft fell 3.7%. Google’s parent company, Alphabet, fell 3.6% in regular trading and lost another 6% in after-hours trading after reporting results that fell short of analysts’ estimates.
More big technology companies are on deck to report earnings this week, including Facebook parent’s company, Meta, on Wednesday, and Apple on Thursday.
GM’s $2.94 billion 1Q profit tops Street views
General Motors’ net income declined in the first quarter, as the automaker sold fewer cars and trucks worldwide, although higher prices helped boost revenue, especially in North America.
GM late Tuesday reported net income of $2.94 billion, or $1.35 per share, versus a profit of $3.02 billion, or $2.03 per share, in the same quarter last year.
Excluding one-time items, such as costs related to its Cruise autonomous vehicle subsidiary, GM’s earnings amounted to $2.09 per share. Analysts’ consensus estimate was for $1.65 per share, according to FactSet.
Revenue jumped nearly 11% to $35.98 billion, but fell below the $36.89 billion analysts projected.
GM’s sales in the U.S., its most profitable market, jumped 13.5% in the first quarter versus a year earlier to $29.46 billion. GM sold 1.43 million vehicles during the quarter, down from 1.75 million in the same period last year.
The Detroit-based company’s worldwide market share slipped to 7.3% from 8.1%.