U.S. stocks were mixed at the end of a choppy session Tuesday as markets struggled to recover from a sharp sell-off that sent all three major indexes to their lowest level year-to-date to start the week.
The S&P 500 was 0.3% higher after the benchmark closed below 4,000 for the first time since March 2021 on Monday, deepening losses from its longest streak of weekly declines since 2011. The Dow Jones Industrial Average fell for a fourth straight day to close 85 points, or 0.3% lower, and the Nasdaq Composite rose roughly 1%.
The moves expand a period of recent turbulence for equity markets as worries around inflation, rising interest rates, and the possibility of an economic slowdown continue to weigh on investor sentiment.
"What you're seeing in the markets right now is just a complete reset and a repricing of not only interest rate but inflation expectations," Verdence Capital Advisors' Megan Horneman told Yahoo Finance, adding: "I think we're in for a bit of a dicey inflation picture" for the rest of 2022.
“The market is void of major positive catalysts right now, so it is not surprising that we’re starting the week off under pressure,” Brian Price, head of investment management at Commonwealth Financial Network said in an emailed note.
Adding to headwinds is a lackluster earnings season that has raised concerns over how corporate profits will fare amid persistent macroeconomic disruptions. As of Friday, the percentage of S&P 500 companies beating EPS estimates was above the five-year average, but the magnitude of the upside surprises was below the five-year average, according to data from FactSet.
“Another catalyst that could be causing some risk aversion as of late is a fairly underwhelming earnings season,” Price added. “It certainly wasn’t as strong as the past few quarters and there is even more ambiguity surrounding future EPS outlooks given the tremendous amount of macro uncertainty.”
For this earnings season so far, 87% of the companies in the S&P 500 have reported actual results for the first quarter year-to-date as of Friday, per FactSet’s latest available data.
Peloton Interactive (PTON) plunged as much as 13% in intraday trading Tuesday after the company reported a higher quarterly loss for the period ended March 31, along with a steep decline in sales.
On the economic data front, Wednesday's Consumer Price Index (CPI) will also be closely-watched by traders for the latest snapshot on the state of inflation in the U.S. The figure is expected to offer clues on how much more aggressively the Federal Reserve will need to act in order to mitigate rising prices.
“The equity market continues to struggle when factoring in the implications of inflation and rising market interest rates on share prices,” Comerica Wealth Management Chief Investment Officer John Lynch said in a note on Monday.
"This is a tightrope walk by the Fed. If it moves too slowly, it risks not tamping down inflation and having higher inflation expectations become embedded – making it more difficult to eliminate," Lynch noted. "Conversely, if the Fed raises rates too quickly, it risks tilting the economy into recession, with the associated job losses and other costs. The Fed indeed has a difficult task in front of it."
4:00 p.m. ET: Dow closes lower for fourth straight session
Here's how the main indexes capped a back-and-forth session Tuesday:
S&P 500 (^GSPC): +9.75 (+0.24%) to 4,000.99
Dow (^DJI): -85.55 (-0.27%) to 32,160.15
Nasdaq (^IXIC): +114.42 (+0.98%) to 11,737.67
Crude (CL=F): -$3.27 (-3.17%) to $99.82 a barrel
Gold (GC=F): -$20.40 (-1.10%) to $1,838.20 per ounce
10-year Treasury (^TNX): -8.6 bps to yield 2.9930%
11:50 a.m. ET: Stocks give up gains, extending sell-off into fourth straight day
Here were the main moves in markets as of 11:50 a.m. ET:
S&P 500 (^GSPC): -12.66 (-0.32%) to 3,978.58
Dow (^DJI): -139.89 (-0.43%) to 32,105.81
Nasdaq (^IXIC): +2.40 (+0.02%) to 11,625.65
Crude (CL=F): -$1.86 (-1.80%) to $101.23 a barrel
Gold (GC=F): -$12.80 (-0.69%) to $1,845.80 per ounce
10-year Treasury (^TNX): -13.5 bps to yield 2.9440%
9:30 a.m. ET: Stocks jump as market attempts comeback from year-to-date low
Here's where all three major indexes traded at the start of the session:
S&P 500 (^GSPC): +73.98 (+1.85%) to 4,065.22
Dow (^DJI): +467.54 (+1.45%) to 32,713.24
Nasdaq (^IXIC): +295.81 (+2.54%) to 11,919.06
Crude (CL=F): -$0.41 (-0.40%) to $102.68 a barrel
Gold (GC=F): +$2.90 (+0.16%) to $1,861.50 per ounce
10-year Treasury (^TNX): -11.2 bps to yield 2.9670%
7:10 a.m. ET: Contracts on all three indexes rise after stocks fall to lowest level this year
Here were the main moves in futures trading ahead of the opening bell on Tuesday:
S&P 500 futures (ES=F): +30.50 (+0.76%) to 4,018.00
Dow futures (YM=F): +213.00 (+0.66%) to 32,374.00
Nasdaq futures (NQ=F): +148.50 (+1.22%) to 12,342.25
Crude (CL=F): -$1.64 (-1.59%) to $101.45
Gold (GC=F): -$0.50 (-0.03%) to $1,858.10 per ounce
10-year Treasury (^TNX): -4.4 bps to yield 3.0790%
6:14 p.m. ET Monday: Stock futures tick higher after S&P 500 closes below 4,000
Here's where stock futures were in post-market trading Monday evening:
S&P 500 futures (ES=F): +10.50 (+0.26%) to 3,998.00
Dow futures (YM=F): +78.00 (+0.24%) to 3,998.00
Nasdaq futures (NQ=F): +42.00 (+0.34%) to 12,235.75
Crude (CL=F): -$0.30 (-0.29%) to $102.79
Gold (GC=F): -$5.30 (-0.29%) to $1,853.30 per ounce
10-year Treasury (^TNX): -4.4 bps to yield 3.0790%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc