The obsessive focus on the threat of inflation continues to drive markets, with the Dow Jones tumbling 476 points, or 1.4%, dragged lower by the energy, financial and industrial sectors.
This marked the second straight day of losses but the Nasdaq was able to recover to be down just 0.1% as buyers emerged.
The selloff came after ex-New York Fed Chair William Dudley suggested higher short-term rates would be required far sooner than expected.
As highlight previously, sustained inflation will require the economy to be nearing productive capacity, rather than just the flow through of price increases as pandemic-era supply chains begin to recover.
Tesla retreats
Tesla (NASDAQ: TSLA) fell 1.9% after reporting a fall in April car sales in China, which were down 27% compared to March, reaching just 25,845 as domestic players continued to gain market share.
Roblox charges higher
In more positive news, video game developer Roblox (NYSE: RBLX) soared 21.3% as investors cheered the company’s first-quarter results. Quarterly revenue surged 140% to US$387 million, while daily active users came in at 43.3 million, up 37% from April of last year.
US stock market movers
Here’s how other popular US stocks fared on Tuesday.
- Fastly (NASDAQ: FSLY) up 9.8%
- Zoom (NASDAQ: ZM) up 4.1%
- Atlassian (NASDAQ: TEAM) up 4.0%
- Amazon (NASDAQ: AMZN) up 1.1%
- Home Depot (NYSE: HD) down 3.0%
- HP (NYSE: HPQ) down 4.7%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to open lower on Wednesday. For all the latest, check out Rask Media’s ASX 200 morning report.
