On Tuesday, the Dow Jones Industrial Average experienced a significant drop of 450 points or about 1.1%, while the S&P 500 and Nasdaq also saw declines of 1% and 1.5% respectively. Bitcoin dropped below $65,000 in the cryptocurrency market, adding to the overall market losses. Additionally, tensions in the Middle East and a Ukrainian drone strike on a major Russian oil refinery caused oil prices to surge to their highest levels since October.
In the health insurance industry, companies like Humana, CVS Health, UnitedHealth, and Elevance Health took a hit when federal regulators did not raise payments for Medicare plans as expected. This led to significant drops in stock prices for these companies. Meanwhile, Tesla faced challenges after falling short of Wall Street’s expectations with only 386,810 electric vehicles delivered in the first quarter of 2024. This caused Tesla’s stock to drop nearly 6% on Tuesday morning trading, making it the worst performer in the S&P 500 so far this year.
Furthermore, the yield on the 10-year Treasury reached a high of 4.386% on Tuesday, which is the highest level so far this year. The increase in yield is attributed to strong performance from the manufacturing sector and anticipation of interest rate cuts.
