- US equities tumbled on Tuesday as investors continued dumping tech stocks and buying safe-haven assets.
- Tech giants including Apple, Microsoft, and Facebook dragged on major indexes, while Treasurys and the dollar gained.
- Investors also digested President Trump’s plan to end US’s reliance on Chinese exports. The statement threatens to reignite the US-China trade war after weeks of relative calm.
- Oil slumped below $40 on fresh warnings of demand weakness. West Texas Intermediate crude sank as much as 7.1%, to $36.96 per barrel.
- Watch major indexes update live here.
US stocks sank on Tuesday as investors continued to dump highly valued tech giants. The tech-heavy Nasdaq composite index dropped more than 3%.
Apple, Microsoft, and Facebook slumped along with top work-from-home plays including Zoom Video and Docusign. Treasurys and the US dollar gained as traders shifted cash to safe havens.
The drop mimics Thursday’s session, when a wave of tech-focused selling led to stocks’ worst day since June. Equities staged a mild comeback in Friday trading but still closed with small losses.
Stocks retraced some losses through the morning but remain on track for a sizable downturn.
Here’s where US indexes stood at 1:10 p.m. ET on Tuesday:
Read more: Fred Stanske uses the insights of Nobel winner Richard Thaler, the ‘father of behavioral finance,’ to beat the market with under-the-radar stocks. Here’s how he does it — and 2 picks he’s buying for long-term gains.
Tesla slid after the firm was excluded from the S&P 500’s latest portfolio rebalancing. The company met the criteria necessary for joining the benchmark, but S&P Dow Jones Indices instead added Etsy, Teradyne, and Catalent to the index.
Elon Musk’s firm tumbled further after General Motors announced a stake in rival electric-vehicle manufacturer Nikola Motors. Nikola surged on news of the deal.
Investors also mulled new threats to the fragile US-China trade relationship. President Donald Trump said Monday he plans to end the country’s reliance on China and its factories. Trump also threatened to punish companies that create jobs outside the US and prevent companies operating in China from winning government contracts.
Read more: ‘Never been so extreme’: A renowned stock bear says today’s ‘hypervalued’ market implies the worst market returns in history — and expects a 66% crash from today’s levels
Disney outperformed the broad market decline after Deutsche Bank upgraded shares to “buy” from “hold.” The bank’s analysts said Disney succeeded in launching its streaming service and is on its way to becoming a global leader in the lucrative sector.
Spot gold fell as much as 1.3%, barely staying above the $1,900-per-ounce threshold, after failing to retake $2,000 at the start of the month.
Oil slid below $40 per barrel after oil giants continued to slash prices on demand weakness. West Texas Intermediate crude slipped as much as 7.1%, to $36.96 per barrel. Brent crude, oil’s international benchmark, dropped 4.7%, to $40.05 per barrel, at intraday lows.
Now read more markets coverage from Markets Insider and Business Insider:
GOLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available
Japanese billionaire laments $41 million loss from day trading in volatile stock market
A Wall Street chief strategist details 8 ways today’s economy mirrors the 1980s recession recovery — and how it can lift stocks even higher