Tech stocks experienced a sharp decline, causing stock indexes to plummet, while Bitcoin briefly reached a milestone before dropping. Gold prices rose to a record high, and the 10-year Treasury note yield fell. Individual stocks had mixed results, with some reporting positive earnings and others facing challenges.
Tech Stocks Plunge as Bitcoin Hits Milestone and Gold Prices Rise
( Credit to: Investopedia )
Tech stocks took a hit on Tuesday, causing stock indexes to plummet, while Bitcoin experienced a brief moment of success before taking a sharp turn downward. The Nasdaq Composite dropped 1.7% on Tuesday, while the S&P 500 and the Dow Jones Industrial Average both shed 1%. Meanwhile, Bitcoin reached a milestone by surpassing $69,000 for the first time before experiencing a significant drop. Despite this, Bitcoin has seen a 50% increase in value this year, thanks to the influx of money into new spot Bitcoin ETFs and anticipation of an impending halving.
On the other hand, the 10-year Treasury note yield fell to a three-week low of 4.14%, dropping by 7 basis points. This decrease in yields, along with the anticipation of interest rate cuts, has led to a boost in gold prices. Gold climbed to a record high above $2,140 per ounce on Tuesday.
Tech Stocks Plunge, Nasdaq Composite Drops 1.7%
The tech sector took a hit on Tuesday, resulting in a significant drop in the Nasdaq Composite. The index plummeted by 1.7%, reflecting the downward trend in tech stocks. This decline is attributed to various factors, including market volatility and concerns about the overall health of the tech industry.
Bitcoin's Momentary Success Followed by Sharp Drop
Bitcoin briefly reached a milestone by surpassing $69,000 for the first time. However, this success was short-lived as the cryptocurrency experienced a sharp drop shortly after. Despite the drop, Bitcoin has still shown significant growth this year, with a 50% increase in value. This growth can be attributed to the growing popularity of spot Bitcoin ETFs and anticipation of the upcoming halving event.
Gold Prices Reach Record High on Decrease in Yields
The decrease in yields, particularly the 10-year Treasury note yield falling to a three-week low, has led to a boost in gold prices. On Tuesday, gold climbed to a record high, surpassing $2,140 per ounce. This increase in gold prices is driven by investor sentiment and the anticipation of interest rate cuts.
Mixed Results for Individual Stocks
The performance of individual stocks varied on Tuesday. While some companies reported positive earnings and saw gains, others faced challenges and experienced losses. Let's take a closer look at some of the notable movements in individual stocks:
- Walmart gained 1.2% following positive earnings reports from competitor Target.
- Intel led the Dow Jones Industrial Average lower, falling 5.4%.
- Tech peers Salesforce and Microsoft also saw declines, with Salesforce down 5% and Microsoft down 3%.
- Amazon shed 2%.
- Apple fell 2.8% after reports indicated a decline in iPhone sales in China.
- Target's stock surged 12% after reporting better-than-expected earnings.
- Dialysis provider DaVita gained 7.1% following data on Novo Nordisk's Ozempic.
- Regional bank stocks advanced, with Citizens Financial Group rising 5.2%, Zions Bancorp advancing 4.5%, and Comerica gaining 3.8%.
- Albemarle plummeted 17.9% after announcing a depositary shares offering.
- Meta Platforms slipped 1.5% due to widespread Facebook, Instagram, and Threads outages.
- Advanced Micro Devices ticked down 0.1% after news from the Commerce Department.
Energy Stocks Gain, Tech Stocks Decline in Nasdaq 100
In the Nasdaq 100, energy stocks saw gains while tech stocks experienced losses. Baker Hughes added 2.5% and Diamondback Energy rose 0.7%. Dollar Tree gained 1.8% after an increased price target. However, MongoDB and CrowdStrike Holdings, two high-flying tech stocks, fell 7.7% and 5.2% respectively. Tesla also fell 3.9% after an arson attack halted production at its Berlin factory. Additionally, Starbucks dipped despite a coalition of unions withdrawing board nominees.
GitLab Shares Plunge on Disappointing Earnings Guidance
GitLab shares took a plunge after the company issued disappointing full-year earnings guidance. The software infrastructure company expects adjusted earnings below Wall Street estimates for fiscal 2025. In the fiscal 2024 fourth quarter, GitLab reported adjusted earnings of 15 cents per share on revenue of $163.8 million.
Lithium Miner Albemarle Plummets on Depositary Shares Offering
Shares of lithium miner Albemarle plummeted after the company announced a depositary shares offering. The funds raised will be used for general business purposes and potentially for the construction and expansion of operations in Australia and China. Albemarle has faced challenges due to lower lithium prices caused by a slowdown in demand for electric vehicles.
SoFi Technologies Slumps on Convertible Bonds Announcement
SoFi Technologies faced a slump after announcing plans to sell convertible bonds. This led to a drop in the company's stock, reflecting potential dilution to existing shareholders if the bonds are converted into stock.
Dialysis Stocks Surge on Novo Nordisk Trial Results
Dialysis stocks experienced a surge after Novo Nordisk reported results from a trial of Ozempic as a kidney disease treatment. Although the results fell short of some analysts' expectations, dialysis providers DaVita and Fresenius Medical Care saw significant gains.
Apple's Stock Slips on Decline in iPhone Sales in China
Apple's stock slipped following reports of a decline in iPhone sales in China. This decline resulted in Apple's market share in China falling to fourth place from second place in the previous year.
Summary
In summary, tech stocks experienced a significant decline, while Bitcoin's momentary success was followed by a sharp drop. Gold prices reached a record high due to decreased yields and anticipation of interest rate cuts. Individual stocks had mixed results, with some reporting positive earnings and gains, while others faced challenges. The market landscape remains dynamic, and investors are closely monitoring the performance of various sectors and stocks.
