Economy

Nasdaq leads market decline as Bitcoin touches new record

Pamela Lowe
Nasdaq leads market decline as Bitcoin touches new record

US stocks fell on Tuesday, moving further away from record highs, as uncertainty over interest rate cuts and a change in Magnificent 7 shares sparked market caution.

Contracts on the Nasdaq Composite Index (^IXIC) led the declines, falling about 1.8% as declines in Apple (AAPL) and Tesla (TSLA) continued to weigh on stocks more broadly.

Apple has been under pressure after a report that iPhone sales fell by 24% in China, adding to Monday's loss in the wake of a $2 billion European Union antitrust fine. Tesla continued its decline, as the closure of its massive factory in Berlin heightened concerns about falling shipments and a Chinese price war.

The S&P 500 (^GSPC) fell about 1%, while the Dow Jones Industrial Average (^DJI) fell about 0.8% after a losing start to the week.

Despite the broader market decline, Bitcoin (BTC-USD) reached a new all-time high, briefly surpassing the previous record of $68,789 as of November 2021. It has since retreated to trade around $65,000 per coin.

The debate is now over whether the technology gains behind the recent record stock rally have peaked, as downbeat news saps the “FOMO” – fear of missing out – that is seen as keeping investors engaged.

Meanwhile, confidence in the Fed's upcoming easing took a hit after policymaker Rafael Bostic's comments. The head of the Federal Reserve Bank of Atlanta said he expects only one rate cut this year, set for the third quarter.

Investors are now more focused on Federal Reserve Chair Jerome Powell's testimony before Congress on Wednesday. His words will be closely watched for any change in the mantra that policymakers need to be convinced that inflation has been beaten before they can act.

In companies, Target's (TGT) earnings beat Wall Street expectations, helping shares rise more than 10% in afternoon trading.

He lives8 updates

  • It's a bear day for the so-called “Magnificent 7” tech stocks.

    Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia (NVDA) are all in the red on Tuesday.

    But as we pointed out about a month ago, history tells us that stocks can still rise this year even if the “Game Seven” loses steam.

    Research conducted by BMO Capital Markets chief investment strategist Brian Belsky in February. 6 showed that even when large stocks driving a significant portion of the market's movement decline, index returns over the following year historically decline It was very good.

    A graph from Belsky shows that since 1992, On average, the S&P 500 rose 14.3% during the year after the peak contribution from the 10 largest stocks averaged the benchmark. The only time the S&P 500 had a negative return in the following year was in 2001 amid the fallout from the tech bubble.

    “While some investors may worry that the market is likely to suffer without these stocks leading the way, our analysis shows that the S&P 500 has performed well after the peak in the relative performance of the 10 largest stocks,” Belsky wrote in a note to the Journal. customers on Tuesday.

  • Popular indicators: SoFi, Target, Meta

    Here are some of the stocks topping Yahoo Finance's trending trends page on Tuesday afternoon:

    Sophie techniques (SOFI): The stock fell about 13% after the company announces a new debt offering. SoFi said it plans to offer $750 million of convertible senior notes due 2029. A portion of the proceeds will pay the cost of entering into the capped call transactions, which are intended to “minimize potential dilution of SoFi's common stock upon any conversion of common stock.” Feedback and/or compensation for any potential cash payments.”

    Target Company (TGT): Shares jumped about 13% after the retail giant posted elevated earnings on both the top and bottom lines. The company has preached it “Roadmap for growth” Which includes establishing Target as a growth company “from a comparable sales standpoint, from a traffic standpoint, and from an overall standpoint [market] A common point of view.”

    meta platforms (dead): Shares fell just over 1% after the company saw a wave of outages across its suite of social media platforms, including Facebook, Instagram and Threads.

    collective strike (CRWD): Shares fell nearly 7% ahead of the company's quarterly earnings announcement, due after the bell on Tuesday. Before the results, Crowdstrike Expansion announced From its partnership with Dell Technologies, which will help customers “defend against increasingly sophisticated cyberattacks.

  • The Nasdaq is leading the broader market declines

    Market losses mounted in early afternoon trading as the Nasdaq Composite Index (^IXIC) led broader declines. The tech-heavy index fell about 1.8% as declines in Apple (AAPL) and Tesla (TSLA) continued to weigh on stocks more broadly.

    Apple shares fell nearly 3% after a report that iPhone sales fell 24% in China. Tesla stock fell 4.5% as the closure of its Gigafactory in Berlin heightened concerns about falling shipments and a Chinese price war.

    The S&P 500 (^GSPC) fell about 1%, while the Dow Jones Industrial Average (^DJI) moved about 0.8%.

  • Gold reaches new highs amid expectations of lower interest rates and geopolitical tensions

    Gold prices rose to new highs on Tuesday amid expectations that the Federal Reserve (US central bank) will cut interest rates alongside continued geopolitical tension.

    Gold futures (GC=F) reached a high of $2,150.50 earlier on Tuesday after April contracts settled at a record high of $2,126.30 an ounce in the previous session. On Tuesday, spot gold touched a record high of $2,141.79 before retreating.

    The precious metal is considered a safe haven in times of uncertainty, and usually rises when the US dollar moves lower and interest rates fall.

    Investors expect the Fed to start cutting interest rates later this year.

    Gold has held above $2,000 for the past two months despite interest rates being higher for a longer period. Central banks are purchasing gold for their reserves at historic levels, which helps increase demand.

    Adjusted for inflation, gold set a record high in 1980 when it reached $850 an ounce, the equivalent of about $3,200 in today's dollars.

  • Bitcoin reaches a new record high

    Bitcoin (BTC-USD) reached a new all-time high of $68,991 to briefly surpass the previous record of $68,789 as of November 2021. It has since retreated to trade around $67,000 per coin.

    The sudden price rise comes amid US regulators' approval of spot Bitcoin ETFs, which… Launched In January. according to BloombergETFs generated more than $4.2 billion in net new inflows in just one month.

    Prices of other cryptocurrencies such as Ethereum (ETH-USD) have also seen a boon amid Bitcoin's rise. Ether prices have risen 66% since the beginning of the year to trade at around $3,800 per coin.

  • Overall preparation and election season

    This day will likely be filled with Super Tuesday analysis from various market experts and other experts.

    So why not join the fun here at Yahoo Finance?

    A good letter from one of my favorite economists, Michael Schumacher at Wells Fargo, just arrived in my inbox. I found it useful to see how he thinks about potential market movements months before the election, with a particular focus on fiscal and monetary policy.

    Schumacher's thoughts:

    Republican sweep

    “In our view, a Republican sweep is the scenario that would cause the largest increase in deficit and Treasury financing needs after 2025. We expect easier fiscal policy under the Trump administration, especially if Republicans control Congress. President Trump is likely to want to extend , if not an expansion, of his previous tax cuts. We expect this scenario to have the largest impact on the Treasury premium and the yield curve (e.g. 5/30s). As we noted earlier, the curve will likely steepen if Trump wins big over the next few weeks. “It becomes increasingly likely that the Republicans will sweep.”

    Democratic sweep

    “This scenario also seems likely to include a larger deficit and a steeper Treasury curve, but by a smaller margin than in the Republican sweep. Even if the Democrats sweep on Election Day, we doubt they will allow the TCJA to expire exactly as scheduled,” our economists say. Tax rates could rise further for higher earners. Furthermore, corporate income tax would also likely increase in this scenario. Although some individual income tax provisions are likely to expire as planned, we “We expect more meaningful spending packages to accompany the end of the tax cuts.”

  • Stocks fall more than record levels

    US stocks fell on Tuesday, once again pulling back from record highs.

    At the opening bell, the S&P 500 (^GSPC) fell 0.4%, while the Dow Jones Industrial Average (^DJI) fell about 0.3% after a losing start to the week. Futures on the Nasdaq Composite (^IXIC) fell roughly 0.8% amid ongoing drawdowns from Apple (AAPL) and Tesla (TSLA).

  • It's Super Tuesday, Target's CEO mentions the election

    Super Tuesday is unlikely to move markets.

    Well, besides there's a lot going on this week in the markets from wild moves in Bitcoin to a drop in Tesla (TSLA) stock.

    But at some point this year, the US presidential election looks set to become contentious He will move Markets. That's why I receive feedback about elections from senior leaders today In order to help guide investors through the turbulent waters months from now.

    Target (TGT) Chairman and CEO Brian Cornell — who I last saw in person inside the White House a few months ago before meeting with the Biden administration — didn't offer me much about his overall views on Super Tuesday. However, he gave me enough in a phone conversation to start thinking about how consumer stock trading will behave in the months leading up to November.

    Here's what he told me:

    “We're watching [the election] Like you, really carefully. We looked at past trends during election years. I think it's guaranteed to bring a little cheer to guests during uncertain times. Rest assured we make Target a special place for them to shop, filled with relevant products and great value. But we know they will continue to consume, and we want to be a destination during what can be a very difficult and uncertain time period.”

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