On Tuesday, the S&P 500 saw significant fluctuations with notable decliners and advancers. Investors reacted to various corporate announcements and broader economic indicators that affected stock performance across the board.
Teradyne (TER) shares experienced the most significant drop, plummeting 17.1%. The manufacturer of electronics testing equipment updated its guidance amid concerns regarding the impact of U.S. trade policies. In an investor presentation, Teradyne highlighted expected near-term volatility in its semiconductor testing sector, coupled with uncertainties related to tariffs and trade restrictions. The company stated that while it doesn't foresee cancellations, it does expect some project delays and capital reviews.
Another major player, Delta Air Lines (DAL), also revised its sales and profit forecasts for the first quarter, reflecting a 7.2% decline in its stock price. The CEO cited economic uncertainty as a significant factor weighing on travel demand, indicating a slowdown in both corporate and consumer spending. This warning impacted other travel-related stocks, including Expedia Group (EXPE), which saw a 7.3% drop, along with various hotel and cruise operators.
Verizon Communications (VZ) faced a 6.7% decline, as the telecom giant warned that increased competition and high prices might hinder subscriber growth. The company also noted that customers are delaying device upgrades compared to previous years.
On the other end of the spectrum, Super Micro Computer (SMCI) surged 10.7%, marking the strongest performance within the S&P 500. This increase followed Rosenblatt Securities reinitiating coverage with a buy rating, noting investor appreciation for Supermicro's innovative design and manufacturing capabilities, particularly in optimizing artificial intelligence (AI) performance.
Meanwhile, Southwest Airlines (LUV) shares rose 8.3% after announcing a new basic economy ticket option that will include charges for checked bags. This strategic shift aims to enhance revenues in light of pressures from activist investor Elliott Investment Management.
CrowdStrike Holdings (CRWD) also saw an increase of 6.8%, recovering some losses after the cybersecurity firm had issued lower-than-expected full-year profit guidance. Analysts remained optimistic about CrowdStrike's market position, anticipating a rebound in annual recurring revenue as contracts are renewed and products are deployed.
Palantir Technologies (PLTR) shares gained 2.2% on Tuesday, rebounding from a recent slump that saw the stock decline by over a third of its market value. Following a report suggesting potential reductions in Pentagon spending, investor confidence waned amid broader tech sell-offs. However, some analysts maintain a bullish outlook, highlighting Palantir's AI-powered analytics capabilities as beneficial in improving government efficiency.
The stock has seen a significant decline since hitting a record high three weeks ago, but it remains three times its value from a year ago. Investors should monitor crucial support levels around $66, $44, and $30, along with resistance levels near $85 and $121.
Viking Holdings (VIK) shares fell 6.1% after executives warned of macroeconomic uncertainties affecting booking trends. Despite reporting solid fourth-quarter results with a revenue of $1.35 billion, the CFO noted a slowdown in bookings for February. Viking's forward-looking statements indicate a cautious approach to managing future bookings amid market conditions.
Shares of Asana (ASAN) plunged nearly 24% following the announcement that CEO Dustin Moskovitz would step down. The company provided a weak fiscal 2026 outlook, projecting revenue to fall short of analysts' expectations. Asana's stock performance reflects broader investor concerns about leadership changes and future growth prospects.
In a notable rebound, several AI-related stocks saw gains on Tuesday. Super Micro Computer (SMCI) led the way, but other key players like Nvidia (NVDA) and Vistra (VST) also performed well, highlighting investor interest in quality AI stocks despite recent downturns.
The S&P 500 fell below its 200-day moving average for the first time since 2023, prompting analysts to discuss the implications for market momentum. Citi analysts suggest that current economic uncertainty may lead companies to prioritize stock buybacks over capital investments, potentially stabilizing stock prices.
The National Federation of Independent Businesses reported a decline in small business optimism, with rising uncertainty reflected in a heightened confidence index. This is concerning for future economic projections, particularly as small business owners react to ongoing tariff discussions and inflation pressures.
Major airlines, including Delta Air Lines, Southwest Airlines, and American Airlines, have lowered their revenue forecasts for the first quarter, attributing the changes to weakening travel demand amid a volatile economic environment. This trend extends to smaller carriers like JetBlue (JBLU), indicating broader industry concerns.
As the S&P 500 navigates through significant fluctuations, keeping an eye on key indicators and sector performance will be crucial for investors. Understanding how trade policies, economic uncertainty, and corporate decisions impact stock valuations can help in making informed investment choices.
