S&P 500 falls and returns to test the 4,200 level, eyeing March lows

• Aside from the strength in energy stocks amid higher oil prices, US equity markets are trading lower on Tuesday.
• The S&P 500 pulled back to test the 4,200 level and was expecting a break towards the March lows.
• China lockdowns, Russo-Ukrainian war/Russian-Western tensions, growth concerns and central bank tightening expectations have been cited as factors weighing on sentiment.

In addition to the strength of energy stocks amid a rebound in oil prices, US stock markets are trading lower on Tuesday, with major indices down, mostly on weakness in large-cap tech stocks ahead of gains in the coming days.

Apple was last trading down 2.6%, Microsoft down 2.7%, Alphabet down 2.9%, Facebook down 3.0% and Amazon down 4.0%, while shares in Tesla fell more than 11%. Microsoft and Alphabet will report first-quarter figures after the closing bell on Tuesday, while a third of S&P 500 companies will report their first-quarter results this week.

The S&P 500 Index last traded down more than 2.0% and tested the 4,200 level, a break below which would likely see it test March lows in the 4,160 region below. The Nasdaq 100 Index, much more heavily weighted by tech/growth stocks, was last trading over 3.0% and was expecting an imminent test of its March lows just above 13,000.

The Dow held up a bit better, though still not well, last trading down around 1.9% at the 33,400 area, where it still resides around 2.5% above its March lows. The S&P 500 CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” broke above 30.00 and hit its highest level in more than a month at 31.50.

Technical levels