April 20, 2024

The Magnificent Seven stocks— Nvidia, Meta, Amazon, Microsoft, Alphabet, Apple, and Tesla — were down on Tuesday as the Dow plunged nearly 500 points. After many weeks, the tech stocks struggled to attract investors, giving a rough start to the second quarter.

Star AI stock Nvidia saw a 1% dip, Alphabet Class A shed 0.96%, and Apple fell 0.70%. After being in decline the whole day, Meta recovered a bit by late afternoon, gaining 0.3% at the time of writing. Microsoft and Amazon dropped 0.8% and 0.3%, respectively. Tesla’s shares dropped over 5.5% on lower delivery, closing the day around $165.

Meanwhile, the crypto market followed suit, sending Bitcoin below $65,000.

It wasn’t all bad news, though. The 10-year Treasury yield, which determines mortgage and credit card rates, rose to 4.386% Tuesday, surpassing February’s high of 4.352%. That’s the highest level so far this year. The rise in Treasury bond yields indicates that investors prefer investments with higher risk and reward.

Silver Lake acquires Endeavor

Technology investor Silver Lake announced that it is acquiring sports and entertainment company Endeavor Group Holdings for $27.50 per share. Following the news, Endeavor’s stock jumped more than 2.8%, trading at $27 at time of writing. Silver Lake, on the other hand, rose 2.4% to $1.27.

GE Vernova makes a debut

On Tuesday, GE Aerospace and GE Vernova began trading as two separate entities on the New York Stock Exchange. While GE Vernova will be the new standalone energy company, GE Aerospace will focus on aviation technology products. Shares of GE Aerospace and GE Vernova rose 0.5% and 4%, respectively. While the former reached its new 52-week high, the latter was among the best-performing stocks today.

Health stocks continue to decline

Among the worst stock performers Tuesday morning were health insurance companies, including Humana, CVS Health, UnitedHealth, and Elevance Health. They took a hit after federal regulators didn’t raise payments for Medicare plans above industry expectations.

By the end of the day, Humana stock fell 13.6%, CVS Health dropped 7.3%, and UnitedHealth dipped 6.9%.

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