The stock market fell on Tuesday – reversing the return rally from a day earlier – with months of sell-off on Wall Street as investors continued to unload shares from Snap amid a gloomy profit outlook, plunging tech stocks and a growing recession. The fear increased. ,
The Dow Jones Industrial Average was down 0.5%, nearly 200 points, while the S&P 500 and the tech-heavy Nasdaq Composite dropped 2.6%.
The relentless market sell-off resumed Tuesday – despite a rebound led by financial stocks the day before, with seven weeks of losses pushing the S&P 500 briefly into bear market territory last Friday.
Vital Knowledge founder Adam Crisafuli says “the stock is taking a hard hit” since Monday evening and “the main culprit is Snap Alert”, with the social media company warning that it expects both quarterly sales and profit to exceed its estimates. will decrease.
Snap’s stock fell nearly 40% after the company blamed its gloomy outlook on the “macroeconomic environment” [that] have deteriorated faster than expected, “weighing on the markets and undermining the shares of other tech companies (which depend on advertising revenue).
“We expect all online advertising platforms to feel some of the impact of a significant consumer pullback,” Morgan Stanley analysts wrote after the Snap announcement, as shares of Google-parent Alphabet fell nearly 5%, Roku more than 7%. , Facebook-parent meta about 8% and Pinterest over 14%.
In other news, shares of Abercrombie & Fitch fell more than 25% as it became the latest major retailer (following the likes of Walmart, Target and Kohl’s last week) to hit profits with inflationary pressures and rising costs. to happen.