U.S. stocks fell Tuesday as the April sell-off continued after a one-day bounce.
The Dow Jones Industrial Average shed about 290 points, or 0.9%. The S&P 500 lost 1%. The Nasdaq Composite retreated 1.6%.
On Monday, the Dow reversed a near 500-point intraday loss to close up more than 200 points. The dramatic market rebound also pushed the S&P 500 and Nasdaq Composite to finish the day higher.
“Quite an impressive reversal, unfortunately we don’t believe that [Monday’s] low is the end of the market’s drawdown,” wrote Rob Ginsberg, technical analyst with Wolfe Research. “The sell-off still feels a bit too orderly to us.”
Monday’s bounce came as stocks have struggled in the past several weeks. The Dow last Friday posted its fourth losing week in a row and the S&P and Nasdaq hit three consecutive down weeks.
Tech shares that led Monday’s comeback struggled on Tuesday, with mega-cap names down ahead of quarterly earnings reports this week.
Microsoft and Google parent Alphabet both shed about 1% ahead of quarterly reports after the bell Tuesday. Facebook parent Meta, Amazon and Apple were also more than 1% lower Tuesday, with earnings results slated for later this week.
The strength in Big Tech stocks in recent years “is likely to burst when fundamentals start to meaningful deteriorate as the overall economy slows,” Wolfe Research’s Chris Senyek said in a research note. Investors are on edge after Netflix’s disappointing report last week.
The tech-heavy Nasdaq is flirting with bear market territory, sitting about 20.4% from its intraday high. For April, the S&P 500 is off by more than 5%, the Nasdaq is down more than 9% and the Dow is down roughly 2%.
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Elsewhere on the corporate earnings front, Dow component 3M fell about 2% despite better-than-expected earnings as the company noted macroeconomic and geopolitical challenges ahead. The stock was the biggest decline on the Dow.
UPS shares also fell 3% despite the shipper’s quarterly earnings and revenue topping expectations.
Other industrial names like General Electric and Boeing were lower in early morning trading Tuesday. GE fell more than 7%, while Boeing eased 1%.
Concerns about global economic growth also loomed as investors worried about a Covid surge in China and potential lockdowns in Beijing. U.S. Treasury yields declined, with the benchmark 10-year rate falling below 2.8%.
Bank stocks also struggled as interest rates fell. Goldman Sachs fell more than 1% and Wells Fargo was marginally lower.
