The stock market shelf has resumed as 40% of Snap’s immersion technology shares have been taken down.

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The stock market plunged on Tuesday, in contrast to the return rally a day earlier, as investors who had been selling on Wall Street for months continued to offload shares from Snap in a profit-oriented scenario, leading to a decline in technical stocks and increased risk of a recession. .

Basic information

The Dow Jones Industrial Average lost 1.4%, or about 500 points, while the S&P 500 lost 2.2% and the tech-heavy Nasdaq Composite lost 3.3%.

Relentless market sales resumed on Tuesday – despite a rebound led by financial stocks a day earlier, seven-week losses briefly pushed the S&P 500 into the beer market area last Friday.

Adam Crisafuli, founder of Vital Knowledge, said after the social media company warned that since Monday evening “stocks are being hit hard” and “the main culprit is Snap Alert” he expects quarterly sales and profits to be lower than his own estimates.

Snap’s stock is down more than 40% [that] Depreciation is faster and faster than expected, ”he said.

“We expect all online advertising platforms to experience some of the effects of a significant consumer pullback,” Morgan Stanley analysts wrote after the Snap announcement, as Google-Parent Alphabet shares about 5%, Roku over 7%, Facebook-Parent Meta about 8%. % And Pinterest more than 14%.

In other news, shares of Abercrombie & Fitch fell more than 25% as it became the latest major retailer (following preferences from Walmart, Target and Kohl last week) to hit gains due to inflationary pressures and rising costs.

Important Quotes:

“Markets can’t hold bids for two days in a row,” said Andy Capirin, chief investment officer at RegentAtlantic. “We have this push and pull, where investors are eager to buy the dive … but then comes some negative news that really breaks confidence,” he said, adding that amid growing market uncertainty, “cash flow is king – companies struggle without cash flow.” Going to do it. “

Original background:

Stocks tried to rebound from last week’s sell-off on Monday, with the Dow rising nearly 2% to 600 points, while both the S&P 500 and Nasdaq rose more than 1.5%. Despite the market’s first daily rise in a week, investors remained fearful of inflation and rising rates as relentless selling pressure continued on Tuesday leading to an economic downturn.

Tangent:

Although the S&P 500 briefly plunged into bear market area last week নিচে 20% below its intraday high in January, experts point out that not all beer markets have historically been in recession. Eight of the previous 14 beer markets have been in recession since World War II — and in more than half of those beer markets, the S&P 500 has reached a low point within two months of initially falling below the 20% threshold, according to data from Bespoke Investment Group. According to.

What to look for:

Investors will be watching closely as Federal Reserve Chair Jerome Powell speaks at an economic conference in Las Vegas later Tuesday. Markets will look for new comments on the central bank’s outlook for inflation and plans to raise interest rates.

Read more:

Snap’s declining profit forecast stock fell 30% What’s next for tech giants? (Forbes)

Here is how long it takes to recover stock from beer market (Forbes)

The Dow has risen 600 points since the JPMorgan rally, but the risk of a “rogue” beer market remains with expertsForbes)

According to Goldman, Deutsche Bank and Bank of America, the worst-case scenario is for stocksForbes)



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