Tech stocks slump again; Nasdaq has worst loss since 2020

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Stocks closed broadly lower on Wall Street Tuesday, weighed down by sharp declines in big tech stocks that also left the Nasdaq composite with its worst drop since September 2020.

Investors are busy reviewing the latest round of corporate earnings and are facing a particularly heavy week with results from some of the nation’s biggest companies. Earnings growth has been one of the pillars of the market, but the reports so far haven’t offset investors’ concerns about rising inflation, interest rate hikes and potential damage to global economic growth from pandemic-related lockdowns in China.

With the Federal Reserve set to aggressively raise interest rates as it steps up its inflation fight, traders are less willing to endure the lofty prices they had been paying for Microsoft, Facebook’s parent company and other tech giants.His approach may have seemed unconventional or half-baked, but Elon Musk’s strategy to buy Twitter was based on sound negotiation principles, experts say.

Retailers and other companies that rely on direct consumer spending also fell broadly. General Motors fell 4.5%, while Nike slipped 5.8%. “It’s the market getting a little more comfortable with a slowdown at best and recessionary fears at worst,” said Ross Mayfield, investment strategy analyst at Baird.China’s strict lockdown measures

Outside of technology companies, earnings for industrial and retail companies remain a key focus of Wall Street for the rest of the week. Airplane maker Boeing reports its results Wednesday. Industrial bellwether Caterpillar reports its results Thursday, along with McDonald’s and Amazon.

 

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