S&P 500 index falls towards 50 DMA as Walmart cuts earnings forecast

• The three main US stock indices sink between 0.44% and 1.79%.
• Sentiment changed after Walmart blamed “high inflation” as it kicked off its profit outlook for the second half of 2022.
• The dollar index is above 107,000, while the yield on the 10-year Treasury note remains flat at around 2.79%.

US equities tumbled after jumping from year-lows, but subdued market sentiment, coupled with the Fed’s July monetary policy decision looming, kept investors uneasy on Tuesday.

At the time of writing this report, the S&P 500 stands at 3,920.79 points, with a fall of 1.16%, while the Nasdaq, of great technological weight, plummeted 1.79%, to 11,572.09 points, and the Dow Jones industrial average lost 0.44%, up to 31,850.33 points.

As for the sectors, the most outstanding is that of health, which rose 1.02%, followed by public services and the real estate sector, which recorded gains of 0.64% and 0.25%, respectively. The sectors that lost the most were Consumer Discretionary, Communication Services and Technology, which fell 3.09%, 1.88% and 1.36% each.

Shares fell as Walmart cut its profit forecast, complaining about double-digit food prices and soaring energy prices. In addition, the monetary policy decision of the US Federal Reserve is looming, and the escalation of the energy crisis in Europe revived recession fears among traders, who opted for safe-haven assets, specifically the dollar.

The US dollar index (DXY), which measures the value of the greenback against some currencies, rose 0.62% to 107,132, while the 10-year US Treasury yield remained almost flat, with a yield of 2,792%.

In the complex of raw materials, the WTI falls 1.13% and is exchanged at 95.60$ BPD. For its part, precious metals such as gold (XAU/USD) fell 0.11%, trading at $17.15 a troy ounce.

SP 500 Chart