Stocks update: Nasdaq drops 3%, Tesla stock down 10%

Nasdaq fell sharply on Tuesday as US stocks struggled yet again, with the tech-heavy index edging lower amid widespread selling. The index was down 3.4% in early afternoon trading.

The S&P 500 was also down, losing by more than 2.3% as investors’ appetite for risk took another hit. The Dow Jones Industrial Average was down nearly 700 points, and was 2.1% in the red.

Tuesday’s struggles for the US market followed mixed closes for Asian and European stocks. In Asia, mainland Chinese shares continued to bleed with the Shanghai Composite closing 1.4% down. The Shenzhen component lost 1.7%. Stocks in Japan, Hong Kong and South Korea ended the session slightly higher.

In Europe, the Stoxx 600 closed nearly 1% lower, while Germany’s DAX slumped 1.2%. UK’s FTSE 100 made very modest gains of 0.08%.

Tesla stock down more than 10%

Tesla was the biggest among mega-cap stocks after it declined by more than 10%, with Elon Musk-led company continuing to see downside pressure in afternoon trading.

Tesla’s sell-off comes just a day after CEO Musk bought Twitter for $44 billion. Twitter’s stock, which had plummeted after the company’s board approved Musk’s bid, was also down by over 3% on Tuesday.

Elsewhere, General Electric and Universal Health Services, which were down 10% and 9% respectively, fell after their first-quarter results. General Electric reported better than expected earnings. However, shares fell after the company’s indication that supply chain woes and inflation pressures could hit full-year profits.

For Universal Health, the declines followed its 12% earnings per share miss for Q1.

In the mega-cap section, shares of Google, Apple, Amazon, and Meta also declined. All the major tech stocks were losing by more than 2% with less than an hour of trading to go.

The post Stocks update: Nasdaq drops 3%, Tesla stock down 10% appeared first on Invezz.

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