Tech Stocks Drop Ahead Of Key Earnings; Nvidia Falls, CrowdStrike Hits 8-Month Low: What's Driving Markets Tuesday?

Investor sentiment took a hit on Tuesday as caution prevailed ahead of significant market events, including key tech earnings reports and the Federal Open Market Committee meeting.

The Nasdaq 100, heavily weighted with tech stocks, experienced the most significant decline among major U.S. indices, dropping 1.5%. Semiconductor stocks were particularly affected, with Nvidia Corp. NVDA plummeting over 6% to a two-month low, impacting the entire industry.

Consequently, the iShares Semiconductor ETF SOXX fell nearly 3%, marking its sixth negative close in the last eight sessions.

The S&P 500 also dipped 0.8%, primarily due to its heavy tech exposure, while the Dow Jones and Russell 2000 managed to avoid losses. Notably, the iShares Russell 2000 ETF IWM has outperformed tech stocks by 15% so far this month.

Microsoft Corp. MSFT declined more than 1% ahead of its post-market earnings announcement, while Apple Inc., Alphabet Inc. GOOGL, and Meta Platforms Inc. META experienced smaller losses in anticipation of their reports later in the week.

Crowdstrike Holdings Inc. CRWD was the worst-performing tech stock on Tuesday, plunging nearly 12% after Delta Air Lines announced it would seek compensation from the cybersecurity firm for last week's outage.

Meanwhile, Treasury yields remained steady, gold edged up 0.3%, and the Japanese yen, tracked by the Invesco CurrencyShares Japanese Yen Trust FXY, gained 0.4% against the dollar in anticipation of a potential Bank of Japan rate hike.

Bitcoin BTC/USD fell 1.5% to $65,812.

Tuesday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Dow Jones	40,607.10	0.2%
Russell 2000	2,242.74	0.1%
S&P 500	5,422.36	-0.8%
Nasdaq 100	18,778.20	-1.5%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.7% lower to $541.00.
• The SPDR Dow Jones Industrial Average DIA rose 0.3% to $406.60.
• The tech-heavy Invesco QQQ Trust Series QQQ fell 1.5% to $457.06.
• The iShares Russell 2000 ETF IWM rose 0.16% to $222.09.
• Sector-wise, the Energy Select Sector SPDR Fund XLE outperformed, up 1.2%, while the Technology Select Sector SPDR Fund XLK lagged, down 2.4%.

Tuesday’s Stock Movers

Stocks moving on earnings were:

• F5, Inc. FFIV, up over 11%.
• Hologic Inc. HOLX, up 2.7%
• Woodward Inc. WWD, down 18%.
• Chesapeake Energy Corp. CHK, down 0.6%.
• Amkor Technology Inc. AMKR, down 18%.
• Crane Company CR, down 4%.
• Lattice Semiconductor Corporation LSCC, down 8%.
• Procter & Gamble Company PG, down 5.6%.
• Merck & Company Inc. MRK, down 10%.
• Pfizer Inc. PFE, down 0.5%.
• S&P Global Inc. SP, down 0.7%.
• Illinois Tool Works Inc. ITW, down 0.5%,
• PayPal Holdings, Inc. PYPL, up 7.4%.
• Ecolab Inc. ECL, down 8.4%.
• Phillips 66 PSX, up 5.2%.
• American Electric Power Company, Inc. AEP, flat.
• Gartner Inc. IT, up 6.7%.
• Archer-Daniels-Midland Company ADM, down 0.4%
• JetBlue Airways Corporation JBLU, up 17%.
• LGI Homes, Inc. LGIH, up 8%.
• Logitech International S.A. LOGI, up 0.6%.
• Restaurant Brands International Inc. QSR, down 0.5%
• SoFi Technologies, Inc. SOFI down 1.9%.

Companies reporting earnings after the close include:

• Advanced Micro Devices, Inc. AMD
• Arista Networks, Inc. ANET
• Caesars Entertainment, Inc. CZR
• DoubleVerify Holdings, Inc. DV
• Electronic Arts Inc. EA
• First Solar, Inc. FSLR
• Freshworks Inc. FRSH
• Live Nation Entertainment, Inc. LYV
• Match Group, Inc. MTCH
• Microsoft
• Mondelez International, Inc. MDLZ
• Pinterest, Inc. PINS
• Skyworks Solutions, Inc. SWKS
• Starbucks Corporation SBUX
• Qorvo, Inc. QRVO.

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Image created using artificial intelligence via Midjourney.