Dow down over 450 points, Nasdaq mounts comeback

U.S. equity markets traded lower Tuesday afternoon as technology and growth stocks pared their losses after falling sharply in early trading amid continued worries over inflation and what it might mean for Federal Reserve policy.

The Dow Jones Industrial Average tumbled 453 points while the S&P 500 declined 0.85%. The Nasdaq Composite, meanwhile, briefly ticked into positive territory before once again turning lower. The tech-heavy index lost as much as 2.2% early in the session.  The selling comes after all three of the major averages declined Monday with both the S&P 500 and the Dow slipping off record highs as the Nasdaq lost more than 2.5%.  

Economic data out Tuesday showed the U.S. reported a record of more than 8.1 million job openings as many Americans choose to stay home, benefiting from the extended unemployment benefits. The latest report on consumer prices is due out Wednesday.  

In stocks, other technology names including Alphabet Inc., Amazon Inc.,  Facebook Inc. and Microsoft Corp. were all lower. 

Those companies are teaming up with chipmakers including Advanced Micro Devices Inc., Intel Corp. and Nvidia Corp. to form a new lobbying group seeking chip manufacturing subsidies amid the global shortage. 

Elsewhere, Tesla Inc. shares declined after Reuters reported the electric-car maker has paused plans to expand its Shanghai factory due to uncertainty caused by tensions between the U.S. and China.  

In earnings, Virgin Galactic Holdings Inc. shares were sharply lower after the space explorer said it was evaluating the timing of its next test flight which was originally scheduled for this month. The company reported an adjusted EBITDA loss of $55.9 million, down from a loss of $59.5 million in the prior three months, on zero revenue.

Mall operator Simon Property Group Inc. raised its earnings forecast for the current fiscal year but said occupancy will not return to 2019 levels until 2023. 

L Brands Inc. will spin off its Victoria’s Secret brand after previously considering a sale. The deal, which will separate Victoria’s Secret and Bath & Body Works, is expected to close in August. 

In commodities, West Texas Intermediate crude oil fell 40 cents to $64.54 per barrel while gold fell by $1.60 to $1,835.90 per ounce.

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Overseas markets were under significant pressure. 

European markets were lower across the board, with Britain’s FTSE 100 tumbling 2.47%, Germany’s DAX 30 losing 1.82% and France’s CAC 40 declining 1.86%.

In Asia, Japan’s Nikkei 225 plunged 3.08% and Hong Kong’s Hang Seng index slid 2.03% while China’s Shanghai Composite edged up 0.4%.