Live Nasdaq Composite: Markets Pull Back on Economic Jitters
Key Points
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The markets came out of the gate lower across the board after eking out gains on Monday and extending the broader market’s winning streak.
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Deutsche Bank said the U.S. economy is experiencing a ‘death by a thousand cuts’ and reveals where the pendulum is swinging.
Live Updates
Snowflake Earnings Preview
One stock that’s on the radar of Wall Street analysts is Snowflake (NYSE: SNOW | SNOW Price Prediction) ahead of the company’s earnings this week. The cloud-based AI data storage company is largely expected to come through with flying colors. Firms like Jefferies, Goldman Sachs and Evercore ISI are all expecting Snowflake to outperform considering its resilience throughout the tariff era. Jefferies analysts aren’t wasting any time and have already raised their price target on the stock to $200 per share, reflecting 20.8% upside potential. The markets remain under pressure, including a 0.23% decline in the Nasdaq Composite.
S&P 500 Earnings Outlook
Most of the S&P 500 companies have reported Q1 earnings already, and according to Factset data, the results are largely impressive. Of the companies that have reported already, over three-quarters (78%) of S&P 500 companies have revealed a positive EPS surprise, while more than half (62%) of them have surprised to the upside on revenue. Nevertheless, JPMorgan CEO Jamie Dimon warned that Wall Street earnings estimates on S&P 500 companies have further to fall amid persistent tariff uncertainty.
Improved Market Sentiment
Bank of America published a report revealing that sentiment around the broader stock market has improved, with its equity risk-love indicator flipping from deep panic last month to a neutral reading most recently. If history is any indication, this improvement suggests stocks could soon revisit their record-high levels, despite today’s lackluster performance. The Nasdaq Composite is currently down 0.48%.
This article will be updated throughout the day, so check back often for more daily updates.
The markets came out of the gate lower across the board this morning after managing to eke out slight gains yesterday. Yesterday’s market performance marked the sixth straight day of gains for the S&P 500, while the Nasdaq Composite and Dow Jones Industrial Average also moved higher. After Moody’s cut the U.S. debt rating by one notch, Deutsche Bank weighed in saying the U.S. economy is “suffering death by a thousand cuts.” The Wall Street firm’s Jim Reid wrote,
“Yesterday felt like we were somewhere along the line of a ‘death by a thousand cuts’ with regards to the U.S. fiscal situation. Hard to know where in that thousand we are but probably much nearer a thousand than at zero even as yesterday saw an initial sell-off reverse as the session went on.”
Tesla (Nasdaq: TSLA) is one of the gainers, rising 3% and helping to offset losses in the Nasdaq Composite and S&P 500. CEO Elon Musk has committed to staying at the helm for the next five years. Dow stock Home Depot (NYSE: HD) has no plans to pass along tariff-related costs to customers, unlike fellow Dow component Walmart’s (NYSE: WMT), which had earlier plans to do so.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Down 50.53 (-0.12%)
Nasdaq Composite: Down 81.77 (-0.43%)
S&P 500: Down 19.17 (-0.33%)
Market Movers
Quantum stocks have captured the spotlight after D-Wave Quantum (NYSE: QBTS) skyrocketed as much as 20% following the release of its newest quantum computing system. The company’s Advantage2 system is officially available via the cloud, representing its most powerful quantum offering to date, featuring greater energy and lower noise.
Dominion Energy (NYSE: D) is tacking on 3.3% today as it climbs closer to its 52-week high level.
Norwegian Cruise Line (NYSE: NCLH) is shaving off 3.2% of its value today.
Airbnb (Nasdaq: ABNB) is off 3.1% after being ordered by Spain to remove tens of thousands of short-term rental listings.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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