Dow drops 491 points amid false comeback rally
The S&P 500 and Nasdaq also stabilized
Equities only deepened their losses this afternoon, with 12-month inflation expectations and consumer confidence data weighing on investor sentiment. The Dow Jones fell 491 points, despite rising more than 440 points to its session highs. The S&P 500 and Nasdaq also posted steep losses as retail and semiconductor stocks took a hit. Elsewhere, major banks such as Morgan Stanley (MS) and Goldman Sachs (GS) increased their dividends after passing the Federal Reserve’s stress test.
Keep reading to learn more about the current market, including:
- Ford engine stock is popular among option bears.
- Is it a background to fight snowflake stock?
- Additionally, the Walgreens sales update; Nike’s post-earnings reaction; and a preview of the pre-profits on this chip stock.
The Dow Jones Average (DJI – 30,946.99) fell 491.3 points, or 1.6% for the day. Chevron (CVX) led the winners, adding 2.4%. Nike (NKE) edged out the laggards with a 7% drop.
The S&P 500 Index (SPX – 3,821.55) lost 78.6 points, or 2% for the day. During this time, the Nasdaq Composite (IXIC – 11,181.54) lost 343 points, or 3% for the session.
Finally, the Cboe Market Volatility Index (VIX – 28.36) added 1.4 points, or 5.2% for the day.
5 things to know today
- Chinese electric vehicle (EV) name Li Auto (LI) plans to increase $2 billion to US investors through an “on the market” equity offering to develop new models. (CNBC)
- FTX CEO Sam Bankman-Fried Says The Crypto Exchange Isn’t Active mergers and acquisitions discussions with Robinhood (HOOD).(MarketWatch)
- Why Walgreens Boots Alliance dropped out UK business sale.
- Nike Stock swept a quarterly win following a weak forecast.
- Register with this semiconductor inventory before winnings.
Oil prices rise as China eases Covid-19 restrictions
Oil prices were higher on Tuesday to claim their third straight win. The easing of China’s zero Covid policy, along with news that the UAE and Saudi Arabia are “nearly producing at capacity”, boosted black gold today. In turn, August-dated crude added $2.19, or 2%, to settle at $111.76 a barrel.
Gold prices closed at their lowest level in about two weeks. Disappointing consumer confidence data weighed on the precious metal. Gold dated August fell $3.60, or 0.2%, to close at $1,821.20 an ounce.