U.S. stocks dipped Tuesday as the major averages struggled to recover from three days of heavy selling that brought the S&P 500 to its lowest level in more than a year.
The Dow Jones Industrial Average was last down more than 110 points, or 0.35% after rising more than 500 points earlier in the session. The S&P 500 and Nasdaq Composite slipped 0.3% and 0.1%, respectively, stepping back an early rally.
Amgen and Chevron led Tuesday’s gains along with technology stocks Microsoft, Intel, Salesforce, and Apple. The technology sector has suffered some of the biggest losses in recent weeks as investors moved out of growth areas and into safe havens like consumer staples and utilities amid recessionary fears.
Meanwhile, Dow Transports dipped about 1%, dragging the index lower. The moves further signaled concerns of a recession as the industry is typically used to measure the strength of the economy. Home Depot, 3M, Nike and JPMorgan Chase fell about 2% each, pulling the index lower.
Amid the sell-off, investors continue to look for signs of a bottom.
“We’ve checked a lot of the boxes that you’d want to check along the way to a correction,” said Art Hogan, chief market strategist at National Securities. “Once you get to the household names, the leaders, the generals, you tend to be at the later phases of that corrective process.”
Some, including hedge-fund manager David Tepper, think the sell-off is nearing an end. Tepper told CNBC’s Jim Cramer on Tuesday that he expects the Nasdaq to hold at the 12,000 level.
Meanwhile, Treasury yields eased from multiyear highs and the benchmark 10-year Treasury note yield traded below 3% after hitting its highest level since late 2018 on Monday.
Much of the recent market moves have been driven by the Federal Reserve and how aggressive it will need to act in order to fight rising inflation.
Tuesday’s moves came after the S&P 500 dropped below the 4,000 level to a low of 3,975.48 on Monday. It marked the index’s weakest point since March 2021. The broad market index dropped 17% from its 52-week high as Wall Street struggled to recover from last week’s losses.
“Despite our expectation of falling inflation and sustained growth, we believe investors should brace for further equity volatility ahead amid significant moves in key economic variables and bond markets,” wrote Mark Haefele of UBS. “We continue to favor areas of the market that should outperform in an environment of high inflation.”
On the earnings front, shares of Peloton Interactive plummeted 15% after reporting a wider-than-expected loss in the recent quarter. AMC’s stock rose 2.8%, while Novavax dropped about 13% on the back of recent quarterly earnings.