Stocks experienced a downturn on Tuesday, extending losses from recent record highs. The S&P 500 declined by 0.3%, while the Nasdaq, known for its tech-heavy composition, slid 0.4%. The Dow industrials, representing blue-chip companies, dropped 0.1%, equivalent to approximately 31 points.
Despite the broader market decline, certain stocks saw notable gains. Micron Technology, for instance, added 1.4%, building on its recent all-time high achieved the previous day. This surge marks its best performance since December 2009, with the memory-chip maker benefiting from robust demand. Other top performers included Seagate Technology, a data-storage company, which rose by 7.4%, and Tesla, climbing by 2.9%.
According to Thomas Martin, a senior portfolio manager at Globalt Investments, investors are generally unconcerned about a significant market pullback. He emphasizes the strong fundamentals supporting certain sectors, particularly in the semiconductor industry, where companies like Nvidia, Micron, and Broadcom continue to demonstrate real earnings growth.
Fresh economic indicators underscored the resilience of the economy. Orders for durable goods surged in February, driven by robust demand for transportation equipment, including aircraft. Additionally, home prices recorded a 6% increase in January compared to the previous year, marking the fastest growth rate since 2022.
However, consumer confidence showed a slight dip, with the Conference Board’s index falling below analysts’ expectations for March. Dana Peterson, the organization’s chief economist, attributed this trend to varying sentiments among different demographic groups, noting increased optimism among older Americans juxtaposed with growing wariness among lower-income individuals.
Bond prices initially fell as yields rose following the release of positive economic data. However, strong investor demand during a Treasury Department auction of 5-year notes alleviated some upward pressure on bond yields. As a result, the yield on the 10-year U.S. Treasury note concluded Tuesday at 4.233%, halting its recent ascent.
In corporate news, International Paper shares declined by 6.5% after unveiling an all-stock takeover offer for DS Smith, a U.K.-based cardboard-box maker. Meanwhile, shares of GameStop dipped in after-hours trading despite a 2.5% increase during regular trading hours, with the company reporting a year-over-year decline in fourth-quarter sales.
Former President Donald Trump saw a financial boost with the debut of Truth Social, the parent company of his social-media platform, on the Nasdaq. Lifted by fervent supporters, shares surged by 16% from the SPAC’s previous closing price, experiencing volatile trading throughout the day.
Additionally, Krispy Kreme shares soared by 39% following the announcement of a deal to distribute its doughnuts at McDonald’s restaurants across the U.S. Meanwhile, cocoa futures reached a milestone, exceeding $10,000 a metric ton for the first time, signaling a significant surge in the sugary commodity market.
Internationally, the Stoxx Europe 600 index achieved a second consecutive record high, reflecting a 6.7% increase since the beginning of the year. Benchmark indexes in Shanghai and Hong Kong also posted gains.