Stocks turned lower in morning trading on Wall Street Tuesday as markets remain volatile amid a busy week of financial reports from some of the major corporates.
The S&P 500 fell 71.07 points or 1.65% to 4,225.44 as of 10:46 am Eastern time zone. The Dow Jones Industrial Average fell 443.18 points or 1.30% to 33,606.28. The Nasdaq fell 340.92 points or 2.64% to 12,661.91.
The low start follows a similar opening on Monday that later turned into a rally, led by technology stocks after Twitter accepted Tesla CEO Elon Musk’s offer to buy the social media company for $44 billion. Twitter slipped 2.1% on Tuesday morning.
Technology companies had some of the biggest losses. Tech stocks with heavy values tend to the broader market in either direction. Microsoft fell 2.1% and Apple dipped 2%. Both companies will announce their latest financial reports later Tuesday.
Retailers and other companies that depend on direct customer spending also fell sharply. General Motors slipped 2.8% before releasing its financial results later Tuesday. Tesla fell 7.3% and Nike shed 2.9%.
General Electric slumped 10% after it said that inflation and supply chain issues are weighing on its profit forecast for the year.
Bond yields fell sharply. The yield on the 10-year Treasury declined to 2.75% from 2.82% late Monday.
Energy companies were trading in green with a 1.6% rise in US crude oil prices. Valero Energy jumped 2.6%.
Financial reports will remain the focus of Wall Street for the rest of the week. Boeing and Meta will report their results on Wednesday. Industrial giant Caterpillar, McDonald’s and Amazon will release their earnings on Thursday.
Investors are closely watching the latest round of corporate report cards to get a better idea of how various industries are handling soaring inflation.
The Federal Reserve may raise short-term interest rates by double the usual amount at upcoming meetings, starting next week. It has already raised its key interest rate once, the first such increase since 2018.