What’s driving the markets?

Monday’s climb for stocks followed the Dow industrials’ longest stretch of weekly losses since 1932 and a temporary dip by the S&P 500 index into bear-market territory last week.

But the Nasdaq Composite has led major indexes with year-to-date losses, down 26% and off 28% from its 52-week high of 16,057.44 reached Nov. 19, 2021. A drop of 20% or more from a recent high is one technical definition of a bear market.

Snap
SNAP,
-3.40%
shares slumped 30% in premarket trading Tuesday after the social-media company warned late Monday that it would likely miss quarterly estimates as the economy has “deteriorated further and faster than anticipated.”

“That’s stopped all the ‘worst is over’ pundits in their tracks. It highlights how fleeting swings in sentiment are now and that investors are running at the first sign of trouble,” said Jeffrey Halley, senior market analyst at OANDA, in a note to clients.

Other tech companies that rely on advertising as a revenue stream were also getting battered in premarket, with Facebook parent Meta Platforms Inc.
FB,
+1.39%
down 6%, Pinterest Inc. 
PINS,
-1.40%
tumbling 11%, Google parent Alphabet
GOOGL,
+2.37%
off 3.8% and Twitter Inc. 
TWTR,
-1.12%
 down 3.4%.

The technology sector has particularly suffered this year as shares of companies that shot to popularity during the pandemic have retrenched amid a shifting economy. Also extremely sensitive to interest rates, the sector has also been unraveling in anticipation of higher rates from the Federal Reserve.

“The market continues to turn itself inside out and back to front as it tries to decide if it has priced all of the impending rate hikes, soft landing or recession, inflation or stagflation, China, Ukraine, US summer driving season, supply chains, the list goes on. The result is a day-to-day chop-fest, and it seems clear that volatility is the winner,” said Halley.

Opinion: Snap’s warning of a weaker outlook sends ripples through tech stocks

Investors may be looking for more policy clues from Fed Chairman Jerome Powell, who is due to give opening remarks at a Native American development conference at 12:20 p.m. Eastern Time. New home sales for April are due at 10 a.m. Eastern.

Opinion:  ‘I feel like I am reliving the summer of 2008.’ Strategist David Rosenberg sees bear market sinking the S&P 500 to 3,300

Among a handful of earnings results due Tuesday, retailers Best Buy Co.
BBY,
+0.32%
and Nordstrom Inc.
JWN,
+1.27%
are due to report ahead of the open, followed by software group Intuit Inc.
INTU,
+0.98%
and diagnostics group Agilent Technologies Inc.
A,
+0.68%
after the close.

Read: Guggenheim’s Minerd believes fine art, real estate will outperform stocks, sees bitcoin bottoming at $8,000

What companies are in focus?

• Shares of Dole PLC
  DOLE,
  +1.92%
  fell 3% in premarket after the food distributor swung to a first-quarter loss and revenue fell short of estimates.

• Best Buy Co.
  BBY,
  +0.32%
  shares rose 5% after the consumer electronics retailer reported fiscal first-quarter revenue that beat expectations. 

How are other assets trading?

• The yield on the 10-year 
  TMUBMUSD10Y,
  2.817%
   note fell 4 basis points to 2.818%.

• The ICE Dollar Index
  DXY,
  -0.17%,
  which measures the greenback against major currencies, was flat.

• Oil prices were up modestly. Crude for July delivery
  CLN22,
  +0.34%

  CL.1,
  +0.34%
  rose 0.2% to $110.61 a barrel.

• Gold prices were higher. Gold for June delivery
  GC00,
  +0.56%

  GCM22,
  +0.56%
  rose 0.6% to $1,858.10 an ounce.

• Bitcoin 
  BTCUSD,
  -0.22%
  was down 3.7% near $29,258

• In European equities, the Stoxx Europe 600 
  SXXP,
  -0.63%
   fell 0.6%, while the FTSE 100 
  UKX,
  -0.19%
  slipped 0.2%.

• In Asia, the Shanghai Composite SHCOMP, -2.41%
  SHCOMP,
  -2.41%
   slid 2.4%, while Hong Kong’s Hang Seng Index 
  HSI,
  -1.75%
  fell 1.7%. Japan’s Nikkei 225 index 
  NIK,
  -0.94%
  dropped 1%.