Stock market extends losses as Dow plunges over 460 points in continuation of lackluster second quarter, reveals CNN Business.

Stock market extends losses as Dow plunges over 460 points in continuation of lackluster second quarter, reveals CNN Business.

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The market’s declines come after the S&P 500 notched its best first quarter since 2019.


New York
CNN
 — 

Stocks fell Tuesday morning as investors continued to worry that the Federal Reserve could cut interest rates later than expected.

The Dow Jones Industrial Average dropped 467 points, or 1.2%, on Tuesday after declining more than 500 points at its lows. That means the blue-chip index had at one point sunk roughly 800 points during the first two days of the second quarter. On Tuesday morning, the S&P 500 fell 1% and the Nasdaq Composite lost 1.4%.

The market’s declines come after the S&P 500 notched its best first quarter since 2019. The S&P 500 index rose 10.2% during the first three months of the year, while the Dow and Nasdaq gained 5.6% and 9.1%, respectively.

Behind the selloff was the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, which rose 2.5% for the 12 months that ended in February, a faster clip than January’s price increase.

Fed Chair Jerome Powell on Friday warned that rate cuts won’t be imminent.


View this interactive content on CNN.com

“We don’t need to be in a hurry to cut,” he said at an event hosted by the San Francisco Fed.

That send bond yields rising. The 10-year Treasury yield touched its highest level of the year on Tuesday and was last trading at 4.36%.

Traders pulled back their expectations for a rate cut in June to about 62% from more than 70% a week earlier, according to the CME FedWatch Tool.

Investors are looking to the March jobs report due Friday morning. Economists polled by FactSet expect a seasonally adjusted total of 202,500 jobs added in March, down from a 275,000 increase in February.

Elsewhere, health insurers are taking a hit after the Biden administration on Monday released the final payment rates for Medicare Advantage and Medicare Part D drug coverage for 2025. Federal payments to Medicare Advantage plans are expected to increase on average by 3.7%, or more than $16 billion, since the total payment depends on a number of factors.

Humana shares slid 14.7%, CVS Health shares declined 9.1% and UnitedHealth Group shares lost 7.6%.

Tesla shares slipped 5.3% on Tuesday, after the electric vehicle maker posted its first annual drop in sales since 2020 as it continued to battle with rising competition.

This is a developing story and will be updated.

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