Stock Market Today: Nasdaq Snaps Win Streak as Twitter Drags on Tech
Twitter stock sold off on news Elon Musk no longer wants to buy the social media platform.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Stocks closed lower on Monday following weekend reports that China initiated a new round of restrictions to combat rising cases of COVID-19.
The directives included a week-long shutdown of non-essential businesses in the Chinese gambling hub of Macau, which sent casino stocks tumbling. Wynn Resorts (WYNN, -6.5%) and Las Vegas Sands (LVS, -6.3%) were among the notable decliners.
The news out of China also weighed on oil prices, with U.S. crude futures shedding 0.7% to end at $104.90 per barrel.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Oil prices are weakening as crude demand outlook is hit by a one-two punch from China's rising COVID cases and Wall Street jitters that inflation is hitting the U.S. economy much harder than analysts were expecting," says Edward Moya, senior market strategist at currency data provider OANDA. "Oil will struggle to hold the $100 level if China's COVID situation deteriorates much further."
In terms of the sector logging the worst performance to kick off the trading week, that distinction easily went to communication services, which fell 3.0% amid an 11.3% drop in Twitter (TWTR) stock. Shares in the social media platform were hit by reports that Tesla (TSLA, -6.6%) CEO Elon Musk will terminate his $44 billion purchase of Twitter.
TWTR's decline bled into other sectors, with Alphabet (GOOGL, -3.1%), Amazon.com (AMZN, -3.3%) and Meta Platforms (META, -4.7%) all chalking up big losses.
The widespread selling snapped the Nasdaq Composite's five-day win streak, as the tech-heavy index finished off 2.3% at 11,372. The S&P 500 Index declined 1.2% to 3,854 and the Dow Jones Industrial Average retreated 0.5% to end at 31,173.
Other news in the stock market today:
- The small-cap Russell 2000 slumped 2.1% to 1,732.
- Gold futures declined 0.6% to finish at $1,731.70 an ounce.
- Bitcoin shed 6% to $20,497.90. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Lululemon Athletica (LULU) fell 4% after Jefferies analyst Randal Konik downgraded the yoga apparel maker to Underperform (Sell) from Hold. The analyst cited concerns over LULU's "sky high" sales per square feet, as well as rising competition in an increasingly crowded space. "We believe there is limited upside ahead, especially as recession risks rise, and there is uncertainty as it relates to the performance of footwear and MIRROR [LULU's home gym], limiting visibility," Konik says.
Another Inflation Update on Deck
So, what's in store for this week? A lot, that's for sure. In addition to the start of second-quarter earnings season, inflation data will remain front and center. The Labor Department will release its consumer price index (CPI) for June on Wednesday morning, with last month's red-hot reading (CPI rose 8.6% year-over-year, the fastest annual pace since December 1981) still fresh on investors' minds.
Regardless of what happens, Tony DeSpirito, CIO of BlackRock's U.S. Fundamental Active Equities, believes that it's best to take a more defensive positioning. "This includes owning energy and financials," DeSpirito says, while also adding "healthcare for a dose of resilience."
Indeed, healthcare stocks are especially helpful as an inflation hedge becaue they can pass higher prices along to consumers. Read on as we explore a dozen healthcare names that are poised to do well in almost any market condition.
-
Quiz: Do You Know How to Avoid the "Medigap Trap?"Quiz Test your basic knowledge of the "Medigap Trap" in our quick quiz.
-
5 Top Tax-Efficient Mutual Funds for Smarter InvestingMutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
AI Sparks Existential Crisis for Software StocksThe Kiplinger Letter Fears that SaaS subscription software could be rendered obsolete by artificial intelligence make investors jittery.
-
Stocks Make More Big Up and Down Moves: Stock Market TodayThe impact of revolutionary technology has replaced world-changing trade policy as the major variable for markets, with mixed results for sectors and stocks.
-
Small Caps Step Up, Tech Is Still a Drag: Stock Market TodayEarly strength gave way to AI skepticism again as a volatile trading week ended on another mixed note.
-
AI Unwind Takes 2% Off the Nasdaq: Stock Market TodayMarkets are paying more and more attention to hyperscalers' plans to spend more and more money on artificial intelligence.
-
Strong Jobs Report Leaves Markets Flat: Stock Market TodayInvestors, traders and speculators are taking time to weigh the latest labor market data against their hopes for lower interest rates.
-
I'm a 55-Year-Old Dad. Here’s How My 28-Year-Old Daughter Showed Me That AXP Is Still a Solid InvestmentAmerican Express stock is still a solid investment because management understands the value of its brand and is building a wide moat around it.
-
Dow Hits New High Ahead of January Jobs Report: Stock Market TodayA weak reading on December retail sales was in focus ahead of Wednesday's delayed labor market data.
-
Tech Stocks Fuel Strong Start to the Week: Stock Market TodayThe blue-chip Dow Jones Industrial Average extended its run above 50,000 on Monday and there are plenty of catalysts to keep the 30-stock index climbing.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
