Dow Jones futures, along with those for the S&P 500 and Nasdaq 100, saw a rise as markets prepared for Tuesday’s opening. In a striking development, President Trump criticized Federal Reserve Chairman Jerome Powell, labeling him a “major loser,” which seemed to correlate with significant downturns in stock values.
In the broader market, major tech players such as Apple and Nvidia faced notable declines. Apple shares dropped 1.9%, continuing a trend where the stock has faltered in three of the past four trading sessions. Currently, Apple’s price remains significantly lower than its 50- and 200-day moving averages, indicating potential weakness.
Nvidia experienced a 4.5% dip, extending a losing streak to three sessions. Investors are keenly watching its 10-week moving average, which could serve as a crucial benchmark in the near term. Additional losses followed in after-hours trading with Nvidia down another 0.9%.
Tesla fared even worse, plummeting 5.8%. Its stock hovers near early April lows, ahead of a quarterly earnings report. Presently, shares are down over 53% from their peak of 488.54, achieved in December.
The volatility was accentuated by Trump’s harsh comments on Powell via social media, where he implied that economic stagnation could persist unless interest rates are lowered promptly. This rhetoric follows previous criticisms of Powell’s management style and timing.
In international economic news, China issued warnings against foreign trade agreements that could disadvantage its economy, revealing ongoing tensions in U.S.-China trade relations.
Looking ahead, several major companies are set to report earnings this week, including industry giants like Alphabet and Boeing.
As the market stands, the Dow Jones Industrial Average dropped 2.5%, losing nearly 971 points, with the S&P 500 and Nasdaq also experiencing declines of 2.4% and 2.6% respectively. However, futures indicate a modest rebound with the Dow, S&P, and Nasdaq all showing gains before the market opens.
Amidst the backdrop of fluctuating oil prices, which have recently fallen to about $62.70 per barrel, and increasing Treasury yields, now hovering around 4.4%, investors are advised to remain cautious. The current correction phase suggests that fresh investments may not be prudent.
Among stocks to keep an eye on, MercadoLibre is attempting to establish a base, while Netflix seeks to break through a critical price point following its latest earnings report. Spotify is also experiencing resistance, having slipped 2.7% recently.
Given the market instability, investors are encouraged to observe potential leaders rather than making immediate purchases. Comprehensive analysis and vigilance in identifying stocks poised for recovery are critical in today’s unpredictable trading environment.
