US stocks closed lower on Tuesday, with the Nasdaq Composite leading the declines. The tech-heavy index sank about 1.7% as Apple and Tesla continued to drag down the broader market. Both the S&P 500 and Dow Jones Industrial Average closed down more than 1%. Bitcoin briefly touched a new all-time high before plummeting 10% to trade around $62,000 a coin.
The recent stock rally has raised concerns about whether tech gains have peaked, with downbeat news undermining investor confidence. Federal Reserve easing expectations were also tempered by comments from policymaker Raphael Bostic, who suggested only one rate cut this year. The focus now shifts to Fed Chair Jerome Powell’s testimony for any policy shifts.
In corporate news, Target beat earnings estimates, sending shares up more than 10%. CrowdStrike reported strong quarterly earnings, with shares jumping 17% on robust guidance. The cybersecurity firm projected strong growth in the coming quarter, exceeding analyst expectations.
Gold prices surged to new highs on expectations of Fed rate cuts amid geopolitical tensions. Gold futures reached a record high, driven by central bank buying and inflation concerns. Bitcoin also hit a new all-time high before retreating, following the approval of spot bitcoin ETFs.
Market losses were exacerbated by the Nasdaq’s decline, with Apple and Tesla leading the tech sell-off. Apple shares fell after a report of declining iPhone sales in China, while Tesla’s stock dropped on production concerns. The S&P 500 and Dow Jones also closed lower.
The upcoming US presidential election is expected to impact markets, with various scenarios likely to influence fiscal and monetary policies. Analysts anticipate market volatility as the election approaches, with potential implications for sectors like consumer goods. Target’s CEO highlighted the company’s focus on providing value and relevance to consumers during uncertain times.
Overall, market sentiment remains cautious amid uncertainty over interest rates, tech stock performance, and geopolitical events. Investors are closely monitoring economic data, corporate earnings, and political developments for signals on market direction.
