Nvidia, whose chips are powering much of the world’s move into artificial-intelligence technology, fell 2 per cent and was the single strongest force pulling the S&P 500 downward. Amazon sank 1.6 per cent, and Apple dropped 1 per cent.
On Wall Street, Constellation Brands tumbled 6.6 per cent after the beer, wine and spirits company warned that it’s seen a slowdown in purchases of its high-end beers, particularly among its Hispanic customers. That pushed it to slash its forecast for profit this fiscal year.
Kraft Heinz fell 7 per cent after announcing that it’s splitting into two, a decade after a merger of the brands created one of the biggest food companies on the planet.
One of the companies will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include the Oscar Mayer, Kraft Singles and Lunchables brands. The official names of the two companies will be released later.
Among the stock market’s few gainers was PepsiCo, which rose 1.1 per cent after an investment firm said it sent suggestions to the company’s board to reaccelerate its growth and boost financial performance. The investor, Elliott Investment Management, has a history of buying into companies and pushing for big changes that can lead to better stock performance.The overall stock market felt pressure from rising yields in the bond market, where the 10-year Treasury yield climbed to 4.27 per cent from 4.23 per cent late Friday. When bonds are paying more in interest, investors are less willing to pay high prices for stocks.Longer-term bond yields are on the rise around the world, in part because of worries about how difficult it will be for governments to repay their growing mountains of debt. In the United States, longer-term Treasury yields are feeling additional pressure from President Donald Trump’s attacks on the Federal Reserve for not cutting interest rates sooner. The fear is that a less independent Fed will be less likely to make the unpopular decisions needed to keep inflation under control over the long term, such as keeping short-term rates higher than investors would like.
Tuesday was also the first opportunity for trading after a federal appeals court ruled late Friday that Trump overstepped his legal authority when announcing sweeping tariffs on almost every country on Earth, though it left the tariffs in place for now.
FAQs
Q1. How did US Stock Market indexes perform?
A1. The S&P 500 fell 44.72 points to 6,415.54. The Dow Jones Industrial Average dropped 249.07 to 45,295.81, and the Nasdaq composite sank 175.92 to 21,279.63.
Q2. Which companies are gainers at Wall Street?
A2. Among the stock market’s few gainers was PepsiCo, which rose 1.1 per cent after an investment firm said it sent suggestions to the company’s board to reaccelerate its growth and boost financial performance.
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