NEW YORK — Technology stocks led Wall Street broadly lower on Tuesday as chipmaker Nvidia pulled back ahead of its highly anticipated earnings report this week.
The S&P 500 fell 30.06 points, or 0.6% to 4,975.51. It is coming off only its second losing week in the last 16. The losses pushed the benchmark index further below the record it set last week.
Pedestrians pass the New York Stock Exchange on Tuesday in New York.
The Dow Jones Industrial Average fell 64.19 points, or 0.2%, to 38,563.80. The Nasdaq composite fell 144.87 points, or 0.9%, to 15,630.78.
Technology stocks were the biggest drag on the market, with chipmakers as a particularly heavy weight. Nvidia slumped 4.4%. It’s still the S&P 500’s biggest gainer so far this year, rising about 40%. Wall Street will be closely watching its latest earnings update on Wednesday for clues about its health and the broader tech sector’s potential in 2024.
Several big retailers reported their latest earnings on Tuesday, presenting a mixed bag of results.
The market fell last week after several pieces of economic data signaled that inflation remains stubbornly high. That stalled a rally that began in late October based on hopes that inflation would cool enough to allow the Federal Reserve to cut interest rates.
“The narrative that drove us to these levels is very much being called into question,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
At this point, Wall Street is now looking for the first rate cut to come in June, months later than earlier anticipated. Investors have to wait until the end of February for another key update on inflation. That’s when the government will release its monthly report on personal consumption and expenses, the Fed’s preferred measure of inflation.
“The key question to answer now is whether inflation is bottoming out, and if it is, does it go sideways or back up,” Samana said.
Investors have a relatively light week of economic news. Data on home sales will be reported on Thursday. The housing market remains tight as demand for homes continues to outpace supply. Mortgage rates remain high, though they have been easing from their most recent peak in late October, when the average rate on a 30-year mortgage hit 7.79%.
Several companies will report earnings this week.
More than 80% of companies in the S&P 500 have reported their latest results. Analysts polled by FactSet expect overall earnings growth of about 3.3% for the fourth quarter and are forecast earnings growth of about 3.6% for the current quarter.
Bond yields fell. The yield on the 10-year Treasury slipped to 4.27%,and the yield on the two-year Treasury fell to 4.61%.
These alternative investments are attracting millennials amid economic woes
These alternative investments are attracting millennials amid economic woes
The collapse of Silicon Valley Bank (SVB) may feel like it happened a lifetime ago, but a new survey analyzed by Moneywise reveals that it may be partly responsible for spooking investors, particularly millennials, into thinking twice about putting their money into traditional investment vehicles during times of high inflation.
A recent survey by retirement resource company Retirement Living discovered that 43% of millennials made alternative investments between October 2022 and March 2023, right around the time of the SVB collapse. Since the bank’s failure, 1 in 4 survey respondents reported an increased interest in alternative investments.
More than three-quarters (78%) of survey respondents made investments during that six-month period, but of those only one-third were alternative investments.
The most popular alternative investments among survey respondents were in cryptocurrency, collectibles, and gold.
“The uncertainty of the stock market makes it likely that I won’t make any money with traditional investing, and possible that I will even lose money,” a 39-year-old woman who was surveyed told Retirement Living. “It’s important to diversify, and now is a good time to look into alternatives.”
So how can you start investing in these different types of assets?
Cryptocurrency
Nearly 1 in 5 of survey respondents who made investments did so in cryptocurrency. But further research by Retirement Living found that searches for “best cryptocurrency to buy” decreased by 72% from April 2022 to March 2023.
This discrepancy may be because crypto hasn’t established itself as a reliable investment. Legendary investor Warren Buffett even stated that he would “never” invest in crypto because it does “not meet the test of currency.”
Despite its rocky reputation, crypto continues to attract a younger audience. According to a survey by crypto exchange Bitget released in April 2023, 46% of millennials across 26 countries owned cryptocurrencies. That’s compared to 25% of Gen X, 21% of Gen Z, and just 8% of baby boomers.
If you want to invest in crypto, you can do so easily through online investing apps. Just be aware some platforms charge fees.
Collectibles
You may think collecting baseball cards and stamps is for kids, but it can earn you big money. Around 6% of Retirement Living survey investors have put cash into collectibles, tied with gold as the second most popular alternative investment.
Now, you don’t need to go digging around your basement to find your Babe Ruth card to get in on the action. Collectibles include items from cars to artwork to wine, and many are accessible via investment platforms.
Some collectibles, however, can take a long time to accrue value, and they’re illiquid so you need to find sellers to get you that good payoff.
But collectibles can also bring greater returns than liquid assets. For instance, according to ArtPrice, the top 100 artists at auction have outperformed the S&P 500 in growth recently.
Gold
Gold is the most trusted alternative investment among Retirement Living survey respondents — even though only 6% of those who invested added it to their portfolio.
The nice thing about investing in gold is that it has inherent value. So even when the stock market is up and down or inflation is driving you wild, you can almost always trust that a pawn shop will want your wedding band.
You can buy gold in physical forms, like bars or jewelry. But there are also investing apps and gold IRAs to make purchases even easier.
This story was produced by Moneywise and reviewed and distributed by Stacker Media.
The business news you need
Get the latest local business news delivered FREE to your inbox weekly.
