On Tuesday, US stocks took a hit, moving further away from record highs as uncertainty over interest rate cuts and a shakeup in top tech stocks weighed on the market. The Nasdaq Composite led the declines, dropping about 1.8% as Apple and Tesla continued to drag down stocks.
Apple faced pressure after a report revealed a 24% drop in iPhone sales in China, while Tesla’s stock slumped due to a shutdown at its Berlin Gigafactory and concerns over a shipment slump and a Chinese price war. The S&P 500 fell about 1%, and the Dow Jones Industrial Average moved roughly 0.8% lower.
Despite the overall market dip, bitcoin reached a new all-time high, briefly surpassing its previous record. The debate now centers on whether the recent tech gains driving the stock rally have peaked, as downbeat news dampens investor enthusiasm.
The Federal Reserve’s potential rate cuts also came into question after comments from Atlanta Fed President Raphael Bostic suggested only one rate cut this year. Investors are now eagerly awaiting Fed Chair Jerome Powell’s testimony to Congress for any hints of a policy shift.
In corporate news, Target reported earnings that beat Wall Street forecasts, causing shares to surge more than 10% in afternoon trading.
Additionally, gold prices hit new highs on expectations of rate cuts and geopolitical tensions, while bitcoin also touched a record high amid regulatory approvals of spot bitcoin ETFs.
As the market navigates through these uncertainties, the focus remains on how various scenarios, including the upcoming election, could impact fiscal and monetary policies and ultimately influence market movements. Stay tuned for more updates as the situation evolves.
