S&P 500 falls towards the 50-DMA as Walmart slashes earnings forecast

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  • The three major US equity indices plunge between 0.44% and 1.79%.
  • Sentiment shifted after Walmart blamed “high inflation” as it rips its profit outlook for the second half of 2022.
  • The US Dollar Index rises above 107.000, while the US 10-year T-note yield is flat at around 2.79%.

US equities slumped after jumping from YTD low levels, but a dampened market sentiment, alongside July’s Federal Reserve monetary policy decision looming, kept investors uneasy on Tuesday.

At the time of writing, the S&P 500 sits at 3,920.79, falling 1.16%, while the tech-heavy Nasdaq slumps by 1.79%, at 11,572.09, and the Dow Jones Industrial average slides 0.44% to 31,850.33

Sector-wise,  the leading sectors are Health, up by 1.02%, followed by Utilities and Real Estate, each recording gains of 0.64 % and 0.25%, respectively. The biggest losers were Consumer Discretionary, Communication Services, and Technology, plummeting 3.09%, 1.88%, and 1.36% each.

Shares fell due to Walmart cutting its earnings forecast, complaining about double-digit food prices and elevated energy prices. Additionally, the US Federal Reserve monetary policy decision is looming, and Europe’s escalating energy crisis re-ignited recession fears amongst traders, which turned to safe-haven assets, namely the greenback.

The US Dollar Index (DXY), a measurement of the greenback’s value against some currencies, rallies 0.62% to 107.132, while the 10-year US Treasury yield is almost flat, yielding 2.792%.

in the commodities complex, WTI drops 1.13%, exchanging hands at $95.60 BPD. Meanwhile, precious metals like gold (XAU/USD) drop 0.11%, trading at $1717.15 a troy ounce.

SP 500 Chart

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