Stock Market Today: Dow Jones Falls As Donald Trump Stock Craters; Cathie Wood
The Dow Jones Industrial Average tumbled Monday amid spiking yields even after key index component Goldman Sachs (GS) beat views. Meanwhile, Tesla (TSLA) fell after Chief Executive Elon Musk said massive job cuts are coming, as Trump Media & Technology (DJT) also sank. And Apple (AAPL) and Nvidia (NVDA) both fell on the stock market today despite bullish Wall Street calls.
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Also, a trio of noteworthy stocks dug in near entries: KLA (KLAC), Lam Research (LRCX) and Heico (HEI).
Stocks initially moved higher after Israel successfully repelled a strike from Iran over the weekend. Israeli Defense Forces chief of staff Herzi Halevi said Monday the attack “will be met with a response.” This seemed to stoke investor fears of more escalation in the Middle East.
In economic news, U.S. retail sales were stronger than expected. March retail sales rose 0.7% overall compared with expectations for a 0.3% increase. They were up 1% excluding autos and gas, also above views. February’s overall gain was revised up to 0.9%.
“While the strong sales growth is a good sign for economic growth in the quarter, the surge in consumer spending could contribute to high consumer prices and cause additional inflation,” Commonwealth Financial Network senior investment strategist Sam Millette said in a note to clients. “Bond yields rose immediately following the release due to rising concerns off a potential no-landing, no-rate-cut scenario.”
Stock Market Today: Nasdaq, Small Caps Mauled
Early gains evaporated into losses as the Nasdaq composite tumbled 1.8%. Trade Desk (TTD) and Atlassian (TEAM) were among the laggards. The former stock fell 6.2% while Atlassian dropped 7.1%.
The benchmark S&P 500 also saw gains melt away as it fell 1.2%. Bucking the tide was regional bank M&T Bank (MTB), which popped more than 4.7% despite an earnings miss. The stock is nearing a 148.23 flat-base entry, MarketSurge analysis shows.
The S&P 500 sectors were all negative. Technology and real estate were given the worst spanking by the bears. Health care and consumer staples, defensive areas, held up best on the stock market today
Small caps reversed lower, with the Russell 2000 skidding 1.4%. Growth stocks also got mauled, with the Innovator IBD 50 ETF (FFTY) falling 2.1%. Breadth was weak, with decliners leading advancers by more than 5-to-1 on the New York Stock Exchange and in excess of 3-to-1 on the Nasdaq.
Yields rallied strongly again after Friday’s flight to safety. The 10-year Treasury note soared 12 basis points to 4.61% while the 30-year jumped 13 basis points to 4.73%. The five-year yield popped 9 basis points to 4.63% while the two-year climbed 3 basis points to 4.92%.
Another Ugly Market Reversal; Tesla Dives On ‘Dark Day’
Dow Jones Today: Salesforce Stock Stumbles
A bear attack saw early gains disappear Monday as the Dow Jones reversed and ended up 248 points lower. This equates to a 0.7% decline. At session highs the blue chip index had surged more than 400 points.
Goldman Sachs stock was the best performer, rising 2.9% after the banker reported first-quarter earnings that were well above Wall Street views. Strength in its trading and investment banking businesses fueled the beat.
Intel (INTC) and UnitedHealth (UNH) also shined. Intel gained 1.7% while UnitedHealth popped 1.5%.
Salesforce (CRM) was the worst performer on the Dow Jones index and the S&P 500 Monday as it tumbled 7.3%. The stock had its worst day since Dec. 5, 2022, according to Dow Jones Market Data.
Salesforce is in advanced talks to acquire Informatica (INFA), the Wall Street Journal reported.
Stock Market Today: Donald Trump Stock Dives On This
The rocky ride continues for Trump Media & Technology investors. On Monday, shares plunged another 18.4% as the company said it planned to issue more stock.
While this is not uncommon for SPAC stocks, the addition of 21.5 million shares will put more than 15% in additional float on the market. Such dilution is never a way to win over shareholders.
Those who bought the Donald Trump stock at recent highs are nursing painful losses. Trump Media stock is now down more than 66% from the stock’s 2024 high, which it touched on March 26.
People who hung on after purchasing Trump Media at its all-time high of 175 — reached in October 2021 when it was still Digital World Acquisition — have lost nearly 85% of their money.
The Truth Social parent also is struggling on a technical basis. Monday’s move means it now sits about 39% below the key 50-day moving average, MarketSurge analysis shows. It could soon test the 200-day line to boot.
As if that wasn’t enough, Trump’s hush-money trial began in New York Monday. This is the first time that a U.S. president has faced a criminal trial.
Cathie Wood Buys Plunging Stock
Warren Buffett once said that investors should “be fearful when others are greedy and to be greedy only when others are fearful.” That was certainly the case with ARK Invest Chief Executive Cathie Wood, who…
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