The S&P 500 Index closed down 0.16% on Tuesday, with the Dow Jones Industrial Average rising by 0.11% and the Nasdaq 100 declining by 0.87%. The mixed market performance was attributed to a decrease in technology stocks and heightened inflation concerns, after the April Consumer Price Index (CPI) rose 3.8% year-on-year, surpassing expectations of 3.7%. Notably, the April core CPI increased by 2.8% year-on-year, again higher than the 2.7% forecast.
In the commodities market, WTI crude oil prices surged over 4% amid ongoing geopolitical tensions in the Middle East, specifically between the US and Iran, which has led to the closure of the Strait of Hormuz—vital for global oil transport. Goldman Sachs projected that the current supply disruption could reduce global crude stockpiles by up to 1 billion barrels by June, which reflects a significant market impact. Additionally, the 10-year Treasury note yield increased to 4.46%, its highest level in six weeks, amidst rising inflation expectations and comments from Chicago Fed President Austan Goolsbee regarding current inflation challenges.
As of now, 83% of the 454 S&P 500 companies reporting Q1 earnings have exceeded estimates, with projected earnings growth of 12% year-on-year, but excluding the technology sector, earnings are projected to rise only 3%, marking the weakest growth in two years. Major stock performers included Qualcomm, down over 11%, while health insurance companies saw gains, with Humana up more than 7%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
