After two straight trading days of gains, US stocks fell on Tuesday as the sell-off resumed once again.
At the time of writing, the Dow Jones Industrial Average was down 0.5%, while the S&P 500 index slipped 1% from the previous close. The Nasdaq Composite lost 1.7% on Tuesday.
On Monday, the S&P 500 briefly topped 5,700 after dipping below 5,600. It closed the day up 0.7%, pulling back from earlier highs.
The Dow and Russell 2000 outperformed, ending up 0.9% and 1.2%, respectively, while the Nasdaq had gained 0.3%.
“Today’s economic data is all second order, so unlikely to contribute to stock market performance. But there are several significant events which are potentially market-moving,” said David Morrison, senior market analyst at Trade Nation.
Top of the list is a planned phone call between Presidents Trump and Putin to discuss ways to end Russia’s war with Ukraine.
“It’s difficult to know what may come out of this, but hopefully it will distract Mr Trump from issuing more tariffs on US trading partners,” Morrison added.
Tesla’s stock slumped again on Tuesday as RBC Capital Markets lowered its price target on the electric vehicle maker. It cited rising competition in the EV space.
Shares of Tesla were down 6.6% at the time of writing.
The stock has fallen 36% over the past month.
Meanwhile, investors will shift their focus to the Federal Reserve’s two-day policy meeting, which begins Tuesday, while continuing to monitor White House developments.
“While the consensus is that the Fed will leave rates unchanged, the market will be hoping for clues as to their future moves,” Morrison said.
The CME’s FedWatch Tool currently suggests that there could be as many as three 25 basis point rate cuts this year.
Google slips
In a major move that underscores the growing importance of cloud security, Google announced on Tuesday that it has entered into a definitive agreement to acquire Wiz, a prominent cloud security startup.
The deal, which is valued at an astounding $32 billion and will be conducted entirely in cash, represents the largest acquisition in Google’s history.
This strategic move by Google signifies a significant investment in bolstering its cloud security capabilities.
Wiz, known for its innovative approach to cloud security, offers a platform that provides comprehensive visibility and control over cloud environments, helping organizations identify and mitigate security risks.
At the time of writing, shares of Google were down 3.6%.
Lucid Group jumps
In a Monday note, Morgan Stanley analyst Adam Jonas upgraded Lucid Group to an equal weight rating from underweight, citing a potential executable AI strategy.
Jonas maintained his $3 price target for the stock, implying a nearly 39% increase from Lucid’s Monday closing price of $2.16. Lucid’s shares have fallen over 28% this year.
On Tuesday, the stock had gained more than 11%.
Jonas is optimistic that the stock will rise in the future due to a new leadership team and their developing AI strategy.
US import prices rise
In February, the cost of imported goods into the United States saw a significant increase.
This surge can be attributed to the escalating trade tensions between the US and its international trade partners.
As these countries engaged in a retaliatory exchange of tariffs, the prices of imported goods were driven upwards.
In the latest economic data release, import prices showed a significant increase of 0.4% for the month.
This marks the most substantial rise in import prices since April 2024, surpassing the Dow Jones forecast which had predicted no change in the category.
Conversely, export prices displayed a more moderate increase of 0.1%.
This subdued growth in export prices can be attributed to a significant 13% decrease in export air passenger fares, which offset increases in other export categories.
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