Stocks Tumble as Wall Street Hits the Brakes

S&P 500 just had its worst day in 4 weeks
By Newser Editors and Wire Services
Posted Apr 2, 2024 3:44 PM CDT
Wall Street Just Had Its Worst Day in 4 Weeks
General Electric banners hang on the facade of New York Stock Exchange Tuesday, April 2, 2024.   (AP Photo/Peter Morgan)

Stocks had their worst day in four weeks Tuesday, as Wall Street hits the brakes on what's been a nearly unstoppable romp.

  • The S&P 500 fell 37.96 points, or 0.7% to 5,205.81 for its worst day in four weeks. It was its second straight drop after setting an all-time high to close last week.
  • The Dow Jones Industrial Average lost 396.61 points, or 1%, to 39,170.24 and likewise pulled further from its record.
  • The Nasdaq composite fell 156.38, or 1%, to 16,240.45.
Worries are rising that the Federal Reserve may cut interest rates fewer times than expected this year. Concerns have also grown that the US stock market has become too expensive after leaping since late October.

Health insurance companies led the market lower on worries about their upcoming profits after the US government announced lower-than-expected rates for Medicare Advantage, the AP reports. Humana tumbled 13.4%. Tesla, meanwhile, dropped 4.9% after delivering far fewer vehicles for the start of 2024 than analysts expected. PVH, the company behind Calvin Klein and Tommy Hilfiger, lost more than a fifth of its value despite reporting strong. profits. Its forecast for profit this upcoming year fell short of analysts' estimates and its stock dropped 22.2%. Among the few gainers on Wall Street were stocks of oil and gas producers, which followed the price of crude higher. Exxon Mobil rose 2% and Marathon Petroleum rose 3.4%. Trump Media and Technology Group recovered 6% after dropping 21.5% on Monday.

Traders have already drastically reduced their expectations for how many times the Federal Reserve will cut interest rates this year, halving them from a forecast of six at the start of the year. That would be in line with the three cuts that Fed officials themselves have hinted at. Because the US economy has remained stronger than expected, investors say the chances are rising the Fed may deliver just two rate cuts this year. That has Gargi Chadhuri, chief investment and portfolio strategist, Americas, at BlackRock, suggesting investors keep their bets spread across a wide range of investments, rather than "trying to time the market—or the Fed."

(More stock market stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.