×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: financial markets

Stocks Decline as Tesla Drops, Rate Cut Timing Eyed

Stocks Decline as Tesla Drops, Rate Cut Timing Eyed
General Electric banners hangs on the facade of New York Stock Exchange, April 2, 2024. (Peter Morgan/AP)

Tuesday, 02 April 2024 04:05 PM EDT

U.S. stocks fell Tuesday as investors weighed chances that the Federal Reserve could delay cutting interest rates, while Tesla shares dropped after the electric car maker posted fewer quarterly deliveries for the first time in nearly four years.

Tesla was among the big`est drags on the S&P 500 and Nasdaq.

Adding to caution, U.S. Treasury 10-year yields rose to their highest since late November.

Recent solid U.S. economic reports have raised doubts about whether the Fed could deliver the three rate cuts outlined in its latest forecast.

"The narrative of 'higher for longer' is coming back into play despite the fact that the Fed does see a rate cut sometime this year. So this has got the market worried," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.

According to preliminary data, the S&P 500 lost 37.73 points, or 0.72%, to end at 5,206.04 points, while the Nasdaq Composite lost 156.38 points, or 0.95%, to 16,240.45. The Dow Jones Industrial Average fell 387.81 points, or 1.00%, to 39,171.55.

Data on Tuesday showed new orders for U.S.-manufactured goods rebounded more than expected in February, while U.S. job openings held steady at higher levels.

The market has pared back expectations for rate cuts to about two this year, from three a few weeks ago, according to LSEG's rate probability app.

Fed officials who spoke on Tuesday reiterated that the U.S. central bank is in no rush to cut rates.

San Francisco Fed President Mary Daly cited a "real risk" of cutting rates too soon and locking in too-high inflation.

Also, Fed Bank of Cleveland President Loretta Mester said on Tuesday she continues to expect the central bank will be able to cut rates this year and noted the June policy meeting might be when the easing kicks off if economic data allows it.

Investors are eagerly awaiting Friday's U.S. non-farm payrolls data.

Healthcare shares were among the day's weakest performers. UnitedHealth, CVS Health and Humana fell as the U.S. government kept reimbursement rates for providers of Medicare Advantage health plans unchanged, in a setback for insurers.

The CBOE Volatility index, Wall Street's fear gauge, rose.

Among other decliners, Calvin Klein-parent PVH Corp.'s shares tumbled after the retailer forecast a roughly 11% drop in first-quarter revenue.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
U.S. stocks fell Tuesday as investors weighed chances that the Federal Reserve could delay cutting interest rates, while Tesla shares dropped after the electric car maker posted fewer quarterly deliveries for the first time in nearly four years.
financial markets
377
2024-05-02
Tuesday, 02 April 2024 04:05 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved