The stock market fell sharply Tuesday after a three-day weekend for the Fourth of July holiday as investors renewed their fears that inflation could continue rising in spite of recession fears. Metals and mining stocks led the declines.
The Nasdaq fell 1.1% after trimming deeper early losses. The S&P 500 fell 1.8%, and the Dow Jones Industrial Average slid 1.9%.
Volume was lower on both the Nasdaq and the New York Stock Exchange as compared to the same time on Friday. The small-cap Russell 2000 lost 2%. The Innovator IBD 50 (FFTY), a bellwether for growth stocks, slipped 1.6%.
The 10-year U.S. Treasury note yields tumbled seven basis points to 2.82%. Last week, the 10-year Treasury yield closed below 3% for the first time since June 7. In mid-June, it hit its highest level since April 2011, at 3.48%.
U.S. Stock Market Today Overview
|Last Update: 10:22 AM ET 7/5/2022|
Meanwhile, U.S. oil prices fell more than 4%, with West Texas Intermediate trading around $103.40 a barrel.
Stock Market Slips As Biden Plans To Roll Back Chinese Tariffs
President Biden is expected to roll back some tariffs on Chinese imports as early as today, reports said. On one hand, the decision could be a gesture to China, but on the other hand the policy change could have more to do with containing inflation.
A report in the Wall Street Journal said people familiar with the situation say Biden could announce his decision this week. It could include a pause on tariffs on consumer goods such as clothing and school supplies, as well as launching a broad framework to allow importers to request tariff waivers.
In Asia, stocks climbed on Japan’s Nikkei 225 index and the Hong Kong Hang Seng, but fell slightly on the Shanghai index. In Europe, stocks fell on most major indexes, with the London FTSE 100, the German DAX and the French CAC 40 all sliding more than 2% in afternoon trading.
This week’s release of Federal Reserve and European Central Bank meeting minutes, due on Wednesday and Thursday could inflate concerns of further interest-rate hikes just as investors remain concerned about a recession.
Materials Stocks Lead Declines
Materials was the worst performing sector, with the S&P Materials Sector ETF (XLB) falling 3.2%. Mining stock Rio Tinto (RIO) slid more than 5%, and steelmakers U.S. Steel (X) and Steel Dynamics fell 7% and 4%, respectively.
Tesla stock dropped more than 3% after the company reported weaker-than-expected deliveries in the second quarter. Meanwhile, Chinese electric-vehicle giant BYD (BYDDF) reported strong sales in June, but the stock still fell nearly 2%.
Netherlands-based chip equipment maker ASML Holding (ASML) fell hard as chip stocks continued reeling in the wake of Micron Technology’s (MU) weak quarterly report on Friday. MU was up 3% Tuesday.
Follow Michael Molinski on Twitter @IMmolinski
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