SPX: S&P 500 Falls as Key Survey Spooks Traders with Lowest Reading Since 2021

Consumer confidence data quickly darkened market sentiment as spending got back to Covid levels.

🚨 S&P 500 Tumbles on Survey

• The S&P 500 index (SPX) tumbled half a percent in the cash session on Tuesday after the release of a closely watched metric revealed a dark situation for the economy. The broad market index was joined in the red by the Nasdaq Composite — down 1.4% — while the Dow Jones Industrial Average added 0.4%.
• Consumer confidence data from the Conference Board came in much lower than anticipated — think Covid-lockdown lows. For February, the survey scored 98.3 from 105.3 a month before and below expectations of 102.7. It was the lowest reading since August 2021 when the Delta variant of Covid was wreaking havoc in the economy.

👨🏻‍💻 AI Stocks Take a Hit

• Stocks across the board took blow after blow with tech giants taking the top spots on the loser board. AI plays, tech plays, you name it — the crème de la crème of the equity market was bruised as Donald Trump’s hostile tariffs spooked traders and investors.
• A bunch of America’s long-term partners are in the queue for tariff slaps and the prospects of rising inflation and trade wars are denting consumer confidence and threatening to derail economic growth.

📈 Nvidia to the Rescue?

• Against that backdrop, markets turned to the US bond market as a safe space. The benchmark 10-year Treasury yield slipped below 4.3% to its lowest level since December. When bond yields rise, prices fall. The US dollar shot modestly higher and the price of Bitcoin BTCUSD slumped under $86,000 per token.
• The only thing keeping things from falling apart appears to be the upcoming earnings report from Nvidia NVDA. Investors are highly bullish on the chip maker’s ability to deliver a bumper quarter with record sales. Forward guidance will serve as a gauge of corporate appetite for more AI chips.