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

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

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

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

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

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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.

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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.

 

 

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