Tesla falls again as tech stocks dip, S&P extends longest string of losses since stock market crash

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Topline

Down for a sixth straight day on Tuesday, the S&P 500 extends its longest streak of losses since the February stock market crash as tech stocks continue to plunge amid rising bond yields – a bearish indicator for investors fearing that the stock market rebound does not come to an end.

Highlights

Shortly after the market opened, the Dow Jones Industrial Average, which has remained roughly stable near its peak in recent days, climbed 24 points, or less than 0.1%, while the S&P 500 slipped for a sixth consecutive day, down 0.5%. , while the highly technological Nasdaq fell 1.8%.

Large tech stocks continued to lead market weakness, with Tesla plunging 5%, while Amazon, Apple, Netflix and Alphabet all slipped around 2%.

Hard-hit cyclical stocks, meanwhile, are up, with entertainment giant Live Nation climbing 5% and energy companies Marathon Oil, Pioneer Natural and ConocoPhillips up nearly 5%.

Shares of special purpose acquisition firm Churchill Capital IV are down 34% after an announced acquisition of electric car maker Lucid Motors, which values ​​rival Tesla at around $ 24 billion.

On the earnings front, Home Depot shares are down 3% after the home improvement company released fourth quarter results that beat analysts’ expectations but are in line with the recently booming growth during the pandemic.

Yields on the 10-year Treasury – an indicator of investor sentiment that moves inversely to stocks – continued to climb, climbing 5 basis points on Tuesday to a one-year high of 1.376%.

Crucial quote

“It’s more or less the same so far this morning as Treasury yields bleed higher – albeit slightly – as the Nasdaq is hit hard and reopening shares rise,” the Treasury said on Tuesday. founder of Vital Knowledge Media, Adam Crisafulli. “Price action over the past 24 hours has been relatively orderly, with most calling the tech slump just a matter of time. The reopening of stocks may be a bit overheated, but positioning in these names remains light, which will help fuel the increase further. “

To monitor

Federal Reserve Chairman Jerome Powell is expected to testify before the Senate on Tuesday morning. It is expected to echo the sentiments of European Central Bank President Christine Lagarde, who signaled on Monday that rising yields were becoming a concern.

Surprising fact

The Nasdaq is down about 5% from an all-time high on February 12. This is the same day that the S&P hit its last peak. It has fallen by about 2% since then.

Tangent

Home prices jumped 10.4% in December – the biggest gain since 2014, according to S&P CoreLogic Case-Shiller data released Tuesday.

Further reading

More stimulus could hurt stocks – here’s the indicator to watch out for before it does (TBEN)

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