Major indexes moved lower Tuesday morning, led by sharp declines for technology stocks, as investors digested a flurry of corporate earnings reports.
The S&P 500 and Dow Jones Industrial Average were each down 0.3%, while the Nasdaq Composite fell 0.8%. The major indexes finished solidly higher on Monday, as big gains for technology stocks powered the S&P 500 and the Dow to record closing highs.
Chip stocks were tumbling Tuesday morning, as AI investor favorite Nvidia (NVDA) fell 5% after finishing at an all-time closing high the previous session. The PHLX Semiconductor Index (SOX) was down about 4% as Arm Holdings (ARM), KLA Corp (KLAC), Advanced Micro Devices (AMD) and ASML Holding (ASML) all fell sharply.
Other large-cap tech stocks were mixed, with Microsoft (MSFT), Meta Platforms (META) and Amazon (AMZN) losing ground while Apple (AAPL) and Alphabet (GOOGL) gained.
Among other noteworthy movers, shares of Bank of America (BAC) was up 2% after reporting better-than-expected quarterly earnings, while Goldman Sachs (GS) and Citigroup (C) were falling despite reporting results that topped estimates.
UnitedHealth (UNH) was down 8%, leading the Dow lower, despite reporting better-than-expected numbers on the top and bottom lines, as investors focused on the company’s spending and a lackluster profit outlook.
Johnson & Johnson (JNJ) was up about 2% after reporting its results, while Walgreens Boots Alliance (WBA) surged more than 15% after reporting strong earnings and announcing plans to close over 1,000 stores in the coming years.
Boeing (BA) shares were up slightly after the beleaguered plane maker said in securities filings that it had entered into a $10 billion credit agreement with a group of lenders, and that it could raise up to $25 billion in stock or debt offerings in the next few years.
The economic data calendar is light on Tuesday but investors will be watching out for comments from a pair of Federal Reserve officials who are scheduled to speak today. Market participants are keeping close tabs on economic data and the views of Fed representatives for indications that the economy remains on sound footing and that the central bank is poised to continue cutting interest rates.
Crude oil futures were down about 5%, extending the previous day’s sharp decline, as volatility persists amid concerns about global demand and the possibility of expanded conflict in the Middle East.
Bitcoin was down about 1.5% at $65,000, after gaining more than 5% on Monday. Gold futures were up slightly at around $2,680 an ounce.