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Some of Wall Street’s brightest stars lost more of their shine Tuesday after another report said U.S. households are getting more pessimistic about the economy.
The S&P 500 fell 0.5% and had been down as much as 1.2% during the day. It was the fourth straight drop for the main measure of the U.S. stock market’s health after it set an all-time high last week.
The Nasdaq composite sank 1.4% as several influential Big Tech companies lost momentum and screeched lower. But the majority of stocks nevertheless rose, which helped the Dow Jones industrial average add 159 points, or 0.4%.
The U.S. stock market has been generally struggling since the middle of last week after several weaker-than-expected reports on the economy thudded onto Wall Street. On Tuesday, the latest said confidence among U.S. consumers is falling by more than economists expected.
The pessimism hit high-momentum areas of the market in particular, those that had seen waves of euphoric investors pile in during recent years. Nvidia fell 2.8%, for example, while Tesla tumbled 8.4%. They were the two heaviest weights on the S&P 500.
Bitcoin likewise sank, falling back toward $88,000, which dragged down stocks of companies in the crypto industry. MicroStrategy, the company that’s raised money in order to buy more bitcoin and now goes by the name Strategy, fell 11.4%
Zoom Communications dropped 8.5% even though it reported stronger results for the latest quarter than expected.
They countered a 2.8% rise for Home Depot, which delivered a stronger profit for the latest quarter than analysts expected.
Along with Home Depot, the majority of stocks within the S&P 500 rose. Homebuilders climbed on hopes that potentially lower mortgage rates could help the industry, for example, and PulteGroup jumped 4.5%.
But homebuilders and retailers are much smaller in market value than Nvidia and other Big Tech stocks, which gives them less weight on the S&P 500 and other indexes.
All told, the S&P 500 fell 28.00 points to 5,995.25. The Nasdaq composite dropped 260.54 to 19,026.39, and the Dow rose 159.95 to 43,621.16.
In the bond market, Treasury yields pulled back as investors herded into investments generally seen as safer when the U.S. economy’s prospects look rockier.
The yield on the 10-year Treasury fell to 4.29% from 4.40% late Monday.
— Associated Press