Nasdaq leads market decline as Bitcoin hits new record

U.S. stocks fell on Tuesday, further away from their record highs, as uncertainty over interest rate cuts and volatility in Magnificent 7 stocks spooked the market.

The tech-heavy Nasdaq Composite Index (^IXIC) contract led the decline, down about 1.8% as declines in Apple (AAPL) and Tesla (TSLA) continued to weigh on stocks broadly.

Apple is under pressure after reports that iPhone sales in China have fallen 24%, and its losses widened on Monday after a $2 billion antitrust fine by the European Union. Tesla's sales continued to slump due to sluggish shipments due to the closure of its Gigafactory in Berlin and growing concerns about price competition in China.

The S&P 500 (^GSPC) was down about 1%, and the Dow Jones Industrial Average (^DJI) was down about 0.8% after falling since the start of the week.

Despite widespread market declines, Bitcoin (BTC-USD) hit a new all-time high, briefly surpassing its November 2021 record of $68,789. It has since retreated and is now trading around $65,000 per coin.

The debate now is whether the tech profits behind recent record stock gains have peaked. This comes as bad economic news dampens the “FOMO'' (fear of missing out) that is expected to keep investors interested.

At the same time, confidence in the Fed's future easing has been shaken following comments from policymaker Rafael Bostic. The Atlanta Fed president said there will be only one rate cut this year, scheduled for the third quarter.

Investors are now paying more attention to Fed Chairman Jerome Powell's testimony to Congress on Wednesday. His words will be closely watched to see if they change the belief that policymakers need to be confident that inflation will be overcome before taking action.

In companies, Target (TGT)'s earnings beat Wall Street expectations, sending its stock soaring more than 10% in afternoon trading.

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Tuesday, March 5, 2024, 1:08 PM ET

Trend Ticker: SoFi, Target, Meta

Below are some of the stocks leading the trend on Yahoo Finance's ticker page in Tuesday afternoon trading.

SoFi technology (Sophie): Shares plunged about 13% after the company announced a new bond issue. SoFi said it plans to issue $750 million in convertible notes due in 2029. A portion of the proceeds will be used to cover the costs of entering into capped call transactions. Its purpose is to “mitigate the potential dilution of SoFi's common stock from the conversion of the stock.” You can also create notes and offset potential cash payments. ”

Target corporation (target): Shares rose about 13% after the retail giant beat profits on both sales and bottom line. The company describes its target as a “roadmap for growth that includes sales, traffic, and establishing itself as a growth company.” [market] Share your position. ”

Metaplatform (meta): Shares fell more than 1% after the company experienced a series of outages across its social media platforms, including Facebook, Instagram and Threads.

Cloud Strike (CRWD): Shares fell about 7% ahead of the company's quarterly results, which will be released after the bell on Tuesday. Ahead of the results, CrowdStrike announced an expanded partnership with Dell Technologies to help customers “defend against increasingly complex cyber-attacks.”
Tuesday, March 5, 2024, 12:05 PM EST

Nasdaq leads overall market decline

Market losses widened in early afternoon trading, with the Nasdaq Composite Index (^IXIC) leading a broad decline. Falls in Apple (AAPL) and Tesla (TSLA) continued to weigh on stocks broadly, with the tech-heavy index down about 1.8%.

Apple shares fell about 3% after reports that iPhone sales in China fell by 24%. Tesla's stock price fell 4.5% as the closure of its Berlin Gigafactory heightened concerns about weak shipments and price competition in China.

The S&P 500 (^GSPC) fell about 1%, and the Dow Jones Industrial Average (^DJI) moved about 0.8%.
Tuesday, March 5, 2024, 11:45 a.m. ET

Gold hits new highs on interest rate cut expectations and geopolitical tensions

Bullion prices hit new highs on Tuesday on expectations that the Federal Reserve will cut interest rates amid continued geopolitical tensions.

Gold futures (GC=F) reached a high of $2,150.50 an ounce early Tuesday after the April contract settled at a record high of $2,126.30 an ounce in the previous session. On Tuesday, spot gold hit a record of $2,141.79 before falling back.

Precious metals are considered a safe haven during times of uncertainty and typically rise when the US dollar weakens and interest rates fall.

Investors expect the U.S. Federal Reserve to begin lowering interest rates by the end of the year.

Despite the rising long-term interest rate environment, gold has remained above the $2,000 level for the past few months. Central banks have been buying reserves at historic levels, helping to boost demand.

Adjusted for inflation, gold reached its all-time high in 1980 at $850 an ounce, the equivalent of nearly $3,200 in today's dollars.
Tuesday, March 5, 2024, 11:01 a.m. ET

Bitcoin hits new all-time high

Bitcoin (BTC-USD) hit a new high of $68,991, briefly surpassing the $68,789 recorded in November 2021. It has since retreated and is now trading around $67,000 per coin.

The price jump comes after U.S. regulators approved a spot Bitcoin ETF that was launched in January. According to Bloomberg, the ETF generated more than $4.2 billion in net new flows in just one month.

Amid the surge in Bitcoin prices, the prices of other cryptocurrencies such as Ethereum (ETH-USD) are also rising. Ethereum's price has increased 66% since the beginning of the year, trading at around $3,800 per coin.
Tuesday, March 5, 2024, 10:15 a.m. ET

Macro settings and election season

This day is likely to feature Super Tuesday analysis from various market commentators and other experts.

Why not have some fun with Yahoo Finance?

A wonderful note arrived in my inbox from one of my favorite economists, Michael Schumacher of Wells Fargo. I found it useful to see how he thinks about possible market movements in the months before the election, with a particular focus on fiscal and monetary policy.

Schumacher's thoughts:

Republican overwhelming victory

“Our view is that a Republican landslide is the scenario that would cause the largest increase in deficits and Treasury funding requirements after 2025, especially if Republicans take control of Congress, which could lead to loosening of fiscal policy under the Trump administration. “We expect that President Trump will likely do so.” “We would like to extend, if not expand, the previous tax cuts. This scenario is based on the combination of the Treasury term premium and the yield curve, e.g. 5s/30s).As previously stated, if Trump wins, the curve will likely become steeper in the coming weeks, increasing the likelihood of a Republican landslide. is becoming increasingly sexual. ”

Democratic Party overwhelming victory

“This scenario also seems very likely to include higher deficits and a steeper Treasury curve, but the margins are smaller than a Republican landslide victory,” our economists said. Even if they won an overwhelming victory, I don't think they would allow the TCJA to be completely revoked.” “As scheduled”. It is thought that the tax rate for high income earners may rise further. Additionally, corporate tax increases are also likely in this scenario. Some personal income tax provisions are likely to expire on schedule, but with the expiration of tax cuts expected to result in more meaningful spending measures. ”
Tuesday, March 5, 2024 9:32 AM ET

Stock prices retreat further from all-time highs

U.S. stocks fell on Tuesday, retreating again from all-time highs.

As of the opening bell, the S&P 500 (^GSPC) was down 0.4% and the Dow Jones Industrial Average (^DJI) was down about 0.3% after falling since the start of the week. Contracts on the tech-heavy Nasdaq Composite Index (^IXIC) fell about 0.8% as Apple (AAPL) and Tesla (TSLA) continued to decline.
Tuesday, March 5, 2024, 7:30 a.m. ET

Today is Super Tuesday, Target CEO mentions election

Super Tuesday is unlikely to move the market.

That's completely understandable, but there's a lot more going on in the markets this week, from Bitcoin's wild rise to Tesla (TSLA) stock's decline.

But at some point this year, a controversial US presidential election is about to happen. move market.That's why I'm collecting comments on the election from top leaders. today This is to guide investors through the murky waters ahead in the coming months.

Target (TGT) Chairman and CEO Brian Cornell, who I last met in person inside the White House a few months ago before meeting with the Biden administration, on Super Tuesday. He did not say much about his macro view. But he gave me enough information in our phone conversation to start thinking about how consumer stock trading might behave in the months leading up to November.

he said to me:

“I was watching [the election] Just like you, be really careful. We've looked at past trends in election years. We believe we can definitely bring a little joy to our guests during these uncertain times. Make Target a special place for them to shop, with relevant products and great value. But we know they still consume and we want to be a destination during what can be a very difficult and uncertain time. ”