Stocks Dive On Fears Of Hawkish Fed; Treasury Yields Rise, Bitcoin Tumbles To $60,000: What’s Driving Markets Tuesday?

Stocks Fall on Hawkish Fed Fears; Treasury Yields Rise, Bitcoin Drops to $60,000: What’s Driving Markets on Tuesday?

Investors are worried on Wall Street as major indexes posted midday losses in New York trading on Tuesday ahead of the Federal Reserve’s potentially hawkish tone at its meeting on Wednesday.

The S&P 500 retreated 0.9% after a 2-day positive streak, while the tech-heavy Nasdaq 100 slightly underperformed, falling 1.1%. Small-cap companies suffered greater losses; The iShares Russell 2000 ETF (NYSE:IWM) fell 1.5%.

The stock market faces fresh pressure as economic data reveals a decline in consumer confidence and persistent wage pressures, putting further pressure on the Federal Reserve.

The Bureau of Labor Statistics reported a 1.2% increase in the employment cost index for the first quarter of 2024; This increase exceeded market expectations for growth of 1% and accelerated the 0.9% increase in the previous three months. In April, the Conference Board consumer confidence index fell from 103.1 to 97 points, falling behind the forecasts for an increase to 104.

Bonds have provided little shelter for investors as yields have risen in response to comments by U.S. Treasury Secretary Janet Yellen, who expressed concern about the path of the deficit and suggested significant measures to address budget shortfalls.

The yield on the 2-year Treasury note has surpassed the psychological 5% threshold, aiming for the highest close since mid-November 2023. The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bull Fund ETF (NYSE:UUP), rose 0.6%.

Gold lost 1.7 percent of its value under the pressure of high yields and a strengthening dollar. Bitcoin (CRYPTO: BTC) is on track for its worst daily performance in four weeks, falling over 5% amid weak sentiment for cryptocurrencies.

Tuesday’s Performance in Major US Indices and ETFs

Major Indices

Price

1 day %change

S&P 500

5,070.03

-0.9%

Dow Jones

37,992.61

-1.0%

Nasdaq 100

17,588.95

-1.1%

Russell 2000

1,982.84

-1.6%

Updated at 12:39 PM EDT

SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.9% to $505.30, SPDR Dow Jones Industrial Average (NYSE:DIA) fell 1.1% to $379.75 and tech-heavy Invesco QQQ Trust ( NASDAQ:QQQ) fell 1.1% to $505.30. $428.01, according to Benzinga Pro data.

By sector, the Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, gaining 0.1%, marking the only positive performance among the eleven S&P 500 sectors. The Energy Select Sector SPDR Fund (NYSE:XLE) was the top laggard, down 2.1%.

Tuesday’s Stock Carriers

Tesla Inc. (NASDAQ:TSLA) fell 5% on Monday after rising 15% on news that full autonomous driving service could be approved in China. Goldman Sachs tempered some of the excitement in a note Tuesday.

Eli Lilly Company (NYSE:LLY) rose 4.6% for its strongest one-day gain since early February as the pharmaceutical giant raised its 2024 revenue forecast.

Other stocks reacting to earnings included Coca-Cola Company (NYSE: KO), down 0.5%; McDonald’s Corp. (NYSE:MCD) lost 0.2%; Eaton Corp. (NYSE:ETN), down 3%; Marathon Petroleum Corp. (NYSE:MPC) down 7.5%; Trane Technologies plc (NYSE:TT), up 5.7%; PayPal Holdings Inc. (NASDAQ:PYPL), up 1.2%; 3M Company (NYSE:MMM), up 3.2%; Arch Capital Group Ltd. (NASDAQ:ACGL) up 2.8% and GE Healthcare Technologies Inc. (NASDAQ:GEHC) fell 13.4%.

Caterpillar Inc. (NYSE:CAT) fell 4.2% on news that the company would be delisted from European exchanges.

Warner Bros. Discovery Inc. (NASDAQ:WBD), the company’s Comcast Corp. (NASDAQ:CMCSA) fell 9.3%, its lowest level since February 2009, following reports that it may lose NBA TV rights to rival NBCUniversal and Amazon.com. Inch. (NASDAQ:AMZN)

Notable names reporting after the close include: Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon.com, Inc., ONEOK, Inc. (NYSE:OKE), Pinterest Inc. (NYSE:PINS), Starbucks Corp. (NASDAQ) :SBUX), Skyworks Solutions, Inc. (NASDAQ:SWKS), Unum Group (NYSE:UNM). Super Micro Computer, Inc. (NASDAQ:SMCI), Stryker Corporation (NYSE:SYK), Renaissancere Holdings Ltd. (NYSE:RNR), Prudential Financial, Inc. (NYSE:PRU), Diamondback Energy, Inc. (NASDAQ:FANG) ), LPL Financial Holdings Inc. (NASDAQ:LPLA), Clorox Co (NYSE:CLX) and Chesapeake Energy Corp (NASDAQ:CHK).

The story continues

Read Next: Analyst Says Paramount Is Worth $4 Or $14 Per Share: ‘We’d Rather End This’

Photo: Shutterstock

“THE SECRET WEAPON OF ACTIVE INVESTORS” Boost Your Stock Market Game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-Day Trial Now!

Want to get the latest stock analysis from Benzinga?

This article Stocks Plunge on Hawkish Fed Fears; Treasury Yields Rise, Bitcoin Drops to $60,000: What’s Driving Markets on Tuesday? appeared first on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.