Wall Street retreats after social media stock rout; SNAP, PINS plunge

May 24, 2022 03:33 PM PDT | By Team Kalkine Media

Google News:

Wall Street retreats after social media stock rout; SNAP, PINS plunge — Image source: Pixabay

Recent News

Oil States International (NYSE:OIS) Sees Turnaround in Profitability R...

Stevanato Group (NYSE:STVN) Balances Debt Use and Growth Strategy NYSE...

CME Group (NASDAQ:CME) Sees Stake Amid Market Nasdaq Composite

Halliburton (NYSE:HAL) Sees Activity Amid and Market NYSE Composite

Wall Street’s main indices closed mixed on Tuesday, May 24, after Snap Inc’s bleak forecast triggered a sector-wide selloff in social media stocks.

The S&P 500 was down 0.81% to 3,941.48. The Dow Jones rose 0.15% to 31,928.62. The NASDAQ Composite declined 2.35% to 11,264.45, and the small-cap Russell 2000 fell 1.56% to 1,764.83.

Snap (SNAP) saw its shares plummet more than 40% to hit their lowest level since March 2020. Snap warned that it would likely miss the quarterly earnings due to the “deterioration of the macroeconomic environment”.

The news also sank other rival social media stocks like Meta Platforms Inc (FB), Pinterest (PINS), and Google parent Alphabet (GOOGL), among others.

Investors are reeling under the pressure of a sluggish economy. Company profits slumped with rising inflation as consumers cut down on their discretionary spending.

Soaring freight costs, supply chain disruptions, raw materials shortage, and Federal Reserve’s interest rate hikes to contain inflation have weighed down heavily on the market.

Out of the 11 sectors of the S&P 500 index, five stayed in the positive territory on Tuesday. Utilities, real estate, consumer non-cyclicals, energy, and healthcare were the top movers. While industrials, financials, basic materials, technology, and consumer cyclicals were the bottom movers.

In the utility sector, NextEra Energy, Inc. (NEE) rose by 2.92%, Duke Energy Corporation (DUK) increased by 1.96%, and The Southern Company (SO) gained 2.08%.

In real estate, American Tower Corporation (AMT) climbed 3.65%, Crown Castle International Corp. (CCI) ascended 3.46%, and Equinix, Inc. (EQIX) gained 1.25%.

In the industrials sector, United Parcel Service, Inc. (UPS) fell by 0.16%, Raytheon Technologies Corporation (RTX) gained 1.50%, and Automatic Data Processing, Inc. (ADP) tanked by 0.11%.

In the crypto space, Bitcoin (BTC) increased by 0.47% and Ethereum (ETH) decreased by 1.34%. The global crypto market cap fell 0.56% to US$1.26 trillion on Tuesday evening.

Also Read: Five travel stocks to watch in June: TH, ARCO, BDL, BOWL & PLYA

Also Read: Ford Motor (F) sued over misleading ads; to pay US$19.2 mn to US states

Also Read: Ralph Lauren’s (RL) Q4 revenue grows 18%, outpacing estimates

Futures & Commodities

Gold futures were up 0.96% to US$1,865.50 per ounce. Silver increased by 1.80% to US$22.115 per ounce, while copper fell 0.74% to US$4.3133.

Brent oil futures increased 0.03% to US$110.98 per barrel and WTI crude fell 0.03% to US$110.26.

Also Read: Snap’s (SNAP) stock rout on profit warning sparks sector-wide selloff

Bond Market

The 30-year Treasury bond yields tanked 3.13% to 2.970, while the 10-year bond yields fell 3.67% to 2.754.

US Dollar Futures Index decreased by 0.33% to US$101.760.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.