Stocks experienced a sharp decline after a strong open, as tech stocks faltered and companies such as Super Micro Computer, Dell, Nvidia, and Intel reported disappointing earnings. Disney also disappointed with its earnings.
Biotech stocks, including Amgen and the Nasdaq Biotechnology Index, struggled, while bond yields rose, negatively impacting the iShares 20+ Year Treasury Bond ETF. Concerns about the economy, including the upcoming weekly jobless claims report and uncertainty about the future, weighed on sentiment.
The consensus estimate for jobless claims is higher than expected, raising further worries. Market recovery from Monday's slump was also challenging.
The key question now is whether the market will retest Monday's low for the S&P 500 before a real recovery can begin. In addition to these concerns, yen-carry-trade unwinding, a potential rate cut, and geopolitical factors have added volatility to the markets.
The stock market rally attempt on Tuesday provided some relief, but a follow-through day is still needed to confirm a sustained recovery.
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