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Stock Market Today: Dow Slides as Tech, Energy Lead Sea of Red on Wall Street

Stock Markets May 09, 2022 04:14PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow slumped Monday, as tech and energy led a wave of selling on Wall Street in the wake of growing concerns about an inflation-led slowdown in global growth.

The Dow Jones Industrial Average slid 2%, or 653 points, the S&P 500 fell 3.2% to close below 4,000 for the first time since Mar. 31, 2021. The Nasdaq fell 4.3%.

Energy fell more than 8% pressured by a stronger dollar and fresh fears over weakening demand from China as Shanghai reportedly intensified Covid-19 lockdown measures.

Devon Energy (NYSE:DVN) was down more than 10%, Marathon Oil (NYSE:MRO) fell more than 13%, and APA (NASDAQ:APA) fell more than 14%.

The recent China lockdowns are expected to slow growth in the world’s second largest economy, adding to fears of a significant slowdown in the global economy at a time when central banks are on the road to tightening monetary policy to rein in inflation.

“The Covid-zero policy [in China] has throttled household spending and has not left the productive side of the economy unscathed,” Morgan Stanley said. “The risk of an extended contraction is plain to see,” it added.

Tech, meanwhile, struggled to find its footing as investors appear wary of buying the dip even as Treasury yields took a breather.

Meta (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) were down more than 2%, while Amazon (NASDAQ:AMZN) slid more than 5%.

The selling in Microsoft took its valuation below $2 trillion for the first time since June 2021.

The earnings front didn’t offer much to help improve investor sentiment as Palantir Technologies (NYSE:PLTR) plunged more than 21% after reporting quarterly results and guidance that fell short of analysts’ estimates.

BioNTech SE (NASDAQ:BNTX), however, bucked the broader market trend lower after its better-than-expected first-quarter results sent its shares more than 2% higher.

Uber Technologies (NYSE:UBER) fell more than 11% as the ride-hailing company reportedly plans to scale back hiring and cut its market marketing and incentives spending, CNBC reported, citing an email from chief executive Dara Khosrowshahi to staff on Sunday.

Crypto-related stocks including Coinbase (NASDAQ:COIN), Marathon Digital (NASDAQ:MARA), and Riot Blockchain (NASDAQ:RIOT) were down double digits after bitcoin fell to its lowest level since June. 

A sign of the negative sentiment on Wall Street, consumer staples, a defensive corner of the market, closed just above the flatline. 

"Consumer Staples defensive characteristics make this sector potentially attractive during market volatility and as the economy slows," Wells Fargo said.

The move below the key 4,000 level in the S&P 500 could pave the way for further pain, though the latest slump in the broader market has pushed it further into oversold levels that may trigger a short-term rebound. 

"This move today is bearish (obviously), and sets up our target range of 3600-4000 ahead- however, we would note that stocks are now very oversold and could easily produce sharp counter-trend rallies in sessions ahead (upwards of +6-10% from the lows)," Janney Montgomery Scott said in a note.  

Stock Market Today: Dow Slides as Tech, Energy Lead Sea of Red on Wall Street
 

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Comments (15)
Millennial Stacker
Millennial Stacker May 09, 2022 8:27PM ET
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Silly Americans thought they could print their way to prosperity
Gregory Me
Gregory Me May 09, 2022 8:27PM ET
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But I'm American and I hate Biden. So you think you can categorize everyone by race? Hmmm....you sound like a lib.
Brandon Reed
Brandon Reed May 09, 2022 8:27PM ET
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American is your nationality, not race.
Steve Geue
Steve Geue May 09, 2022 7:50PM ET
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As long as Brandon sits in the White House you'd better be An active investor who is skilled at picking stocks
Meru Pet
Meru Pet May 09, 2022 6:47PM ET
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tomorrow looks positive (futures)
The Investor
BullishMarket May 09, 2022 5:27PM ET
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Thank you FED for always stealing money from middle class, not controlling your money policy, making us poorer with inflation and vaporizing our investments at the same time what a f.cking time of slavery.
The Investor
BullishMarket May 09, 2022 5:23PM ET
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Powell erkeksen yarin sabah FEDin kapisinin onune gel, seni tokatlamaya gelecegim.
rob bbbbbbbb
rob bbbbbbbb May 09, 2022 5:20PM ET
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Dont say nobody was warned.... https://worldyturnings.blog/2021/06/15/the-big-lie-free-markets/
rob bbbbbbbb
rob bbbbbbbb May 09, 2022 5:19PM ET
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Dont allow comments if not logged in! They are DELETED!
Nick Johnson
Nick Johnson May 09, 2022 5:10PM ET
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Everything is on fire and Biden is holding a gas can.
Brad Albright
Brad Albright May 09, 2022 5:10PM ET
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carlos boyd Get back in your cave. Put on your tin foil hat. Brush your tooth.
Will Stewart
Will Stewart May 09, 2022 5:10PM ET
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carlos, I hate to break it to you, what everybody else knows... trump NEVER won an election. He *Always* got fewer Votes than his Opponent. Did you know that? do you Like to back a Loser? I prefer Winners myself, and, yes, i am a Republican.
Will Stewart
Will Stewart May 09, 2022 5:10PM ET
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in Addition to Losing every Single election, Trump ALSO lost every single Poll of Favorability and Presidential Approval, both. He was Never Anything other than Significantly** Underwater...
Ji JaaN
Ji JaaN May 09, 2022 5:05PM ET
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I Will Never Trade In Us Tech Again I Lost My Money You *****
Mike Jarvis
Mike Jarvis May 09, 2022 5:05PM ET
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Another day like this and I will need a transfusion. Geeeeeezzzzzzz.
 
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