A downturn in U.S. stocks this morning was spurred by pressure in tech stocks after Snap Inc. CEO Evan Spiegel slashed the social media giant’s forces, citing rising inflation and interest rates, supply chain constraints and labor disruptions. Shares of Snap plummeted 30% in extended trading.
Yesterday marked the 13th of 98 trading days that the S&P 500 closed in positive territory, but the positivity was short-lived as the S&P 500 fell 1% this morning, placing it back on track toward a bear market.
Snap is the latest among a growing list of U.S. companies that are minimizing their projections over concerns macroeconomic pressures are poised to weigh on margins.
Last week, disappointing earnings from major retailers like Target and Walmart affirmed fears that inflation and continued supply chain issues are hitting corporate balance sheets.
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