- Stocks resumed their decline on Tuesday following an impressive bounceback on Monday.
- Investors are anxiously awaiting a Fed policy announcement on Wednesday and Q4 earnings results.
- Microsoft is scheduled to report earnings after the close on Tuesday.
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US stocks resumed their decline on Tuesday after a volatile trading session on Monday that saw the Nasdaq fall nearly 5% before it ultimately closed up 0.63%.
The continued sell-off comes before a highly anticipated Federal Reserve meeting that wraps up on Wednesday, as well as a cascade of earnings reports from mega-cap companies. Microsoft is scheduled to report after the close on Tuesday.
So far 13% of S&P 500 companies have reported their earnings results. Of those companies, 88% have beat EPS estimates, while 77% of the companies have beat revenue estimates, according to data from Fundstrat.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 4,350.16, down 1.36%
- Dow Jones Industrial Average: 34,032.09, down 0.97% (332.41 points)
- Nasdaq Composite: 13,636.63, down 1.56%
The price of dogecoin popped as much as 8% on Tuesday after Tesla CEO Elon Musk tweeted that he would eat a happy meal on TV if McDonald's accepted the meme-token as a form of payment for its food.
The ongoing meltdown in cryptocurrencies isn't fazing Michael Saylor's MicroStrategy, which said it plans to continue buying bitcoin despite the recent sell-off.
A listing loophole at OpenSea led to NFTs worth over $1 million selling for fractions of their perceived value. The loophole has since been closed, according to OpenSea.
Amid the decline in stocks, many investors are counting on the Federal Reserve to save the stock market by pivoting to a less hawkish stance. But famed short-seller Jim Chanos says that idea is dangerous.
"The idea of a Fed put and that the Fed is always going to be there to bail out my bad investment decisions is really not cogent investment policy to hold onto for a long time," Chanos said.
West Texas Intermediate crude oil rose as much as 0.25% to $83.52 per barrel. Brent crude, oil's international benchmark, jumped as much as 0.50% to $86.70 per barrel.
Gold fell as much as 0.04% to $1,841.00 per ounce. The yield on the 10-year Treasury fell less than 1 basis point to 1.75%.