US Nasdaq plummets 2.4%; Snap leads tech selloff

The US stocks mostly declined on Tuesday, 24 May 2022, with the Nasdaq and the S&P 500 settling significantly below neutral line, while the Dow managed to close modestly higher.

The pullback on Wall Street was due to lingering concerns that aggressive interest rate hikes by the Federal Reserve could lead to a recession. Adding to the negative sentiment was the Commerce Department latest report showing a much steeper than expected drop in new home sales in the month of April.

At the close of trade, the Dow Jones Industrial Average index rose by 48.38 points, or 0.15%, to 31,928.62. The S&P500 index fell 32.27 points, or 0.81%, to 3,941.48. The tech-heavy Nasdaq Composite Index decreased by 270.83 points, or 2.35%, to 11,264.45.

Total six of the 11 major S&P sectors ended the session red, with communication services, consumer discretionary, and information technology issues suffering the largest percentage loss, while utilities, consumer staples, and realty issues enjoying the largest percentage gain.

Shares of Snap Inc plummeted by 43.1 percent to a two-year closing low after the company warned of weaker than expected second quarter results, citing the macroeconomic environment has deteriorated further and faster than anticipated.

ECONOMIC NEWS: The Commerce Department report showed that new home sales plunged by 16.6 percent to an annual rate of 591,000 in April after tumbling by 10.5 percent to a revised rate of 709,000 in March.

Among Indian ADR, Tata Motors declined 0.44% to $27.26, Wipro fell 2.48% to $5.89, INFOSYS fell 2.59% to $18.40, and ICICI Bank fell 0.65% to $18.33. Azure Power Global fell 2% to $13.89, and WNS Holdings fell 1.2% to $71.63. HDFC Bank added 1.1% to $54.25 and Dr Reddy's Labs added 2.56% to $56.48.

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