On Tuesday, Automaker Lucid and payment company PayPal were among the stronger fallers on the New York stock exchanges. Lucid, a manufacturer of electric cars and a rival to Tesla, lost more than expected last quarter.
At the end of March, the company announced it would lay off almost a fifth of its staff to cut costs. As a result, the share was lowered 7.3 percent. PayPal (minus 9.8 percent) performed better than expected last quarter, but expectations for the current quarter were disappointing.
The mood on Wall Street remained cautious. Investors appear to be taking little risk ahead of the key US inflation figure due to release on Wednesday. The Federal Reserve raised interest rates last week in the fight against inflation but hinted that it could be the last hike. Investors, therefore, hope inflation has cooled further so that the Fed can pause rate hikes.
Shortly after the start of trading, the Dow Jones index was 0.2 percent lower at 33,557 points. The broader S&P 500 lost 0.5 percent at 4120 points, and the tech indicator Nasdaq fell the same percentage to 12,196 points.
Palantir Technologies shot up 16 percent. The data company performed better than analysts and investors had expected last quarter. The company also came up with a positive outlook for the full year, in which it expects to be profitable for the first time.
Tech and software group Microsoft recorded 0.2 percent in the min. Social media platform LinkedIn, part of Microsoft, is cutting 716 jobs due to reduced demand and a worsened economic outlook. About 20,000 people work at LinkedIn; the layoffs are in various company branches.
Goldman Sachs fell 0.5 percent. The investment bank has agreed to pay $215 million to end a long-running lawsuit. In that case, Goldman was accused of systematically underpaying women.
Novavax suddenly became worth no less than 25 percent more. The biotechnology company will thoroughly reorganize to cut costs and cut about a quarter of its jobs worldwide. The company employs just under 2000 people. Novavax is struggling with disappointing sales of its corona vaccine, the company’s only product.
Chip equipment maker Skyworks Solutions, a supplier to iPhone maker Apple, plummeted 11 percent after a disappointing sales and profit forecast for the current quarter.