Stock market live updates: Oil collapses, stocks slide ahead of inflation data

U.S. stocks fell sharply for a second straight session Tuesday as investors brace for June inflation data.

The commodity and currency markets were in focus for much of the trading day, with oil prices under duress and the dollar inching closer toward breaking parity with the euro.

The S&P 500 and Nasdaq Composite each closed down nearly 1%, while the Dow Jones Industrial Average shed 190 points, or 0.6%. All three indexes saw losses accelerate in the final hour of trading.

The euro fell as low as 1.0004 against the dollar as all eyes remained on whether the currency will fall below parity — or a 1:1 ratio — with the dollar.

In energy markets, crude oil futures were off more than 8% to trade below $96 a barrel as commodities remain under pressure amid investor fears of a global recession.

Tamara Basic Vasiljev, senior economist at Oxford Economics, said in a note Monday that all of the financial easing seen in advanced economies worldwide has been undone by this year’s surge in interest rates and decline in financial markets. In Vasiljev’s view, however, the recent slide in commodities suggests inflation pressures may have peaked, which could ease financial conditions going forward.

“Now that the commodity prices are falling again and inflation peak looks to be within reach it is likely that we are seeing the worst of financial conditions tightening,” Vasiljev wrote. “If so, conditions worsening is dire but the level is still more in favor of [an] orderly slowdown rather than a recession.”

Elsewhere in markets, crypto was under pressure again on Tuesday morning, with bitcoin (BTC-USD) falling below $20,000 once again after the world’s biggest cryptocurrency enjoyed its best week since last fall.

This week also marks the start of second quarter earnings season, with PepsiCo (PEP) the first major corporation to post results for the quarter before Tuesday’s market open.

The beverage and snack giant reported sales that beat estimates and raised its forecast for the full-year.

On the move

  • Walmart (WMT) and electric vehicle maker Canoo (GOEV) announced a deal Tuesday morning that included a deal for the retailer to buy 4,500 electric vehicles with an option to purchase an additional 100,000 vehicles. Shares of Canoo more than doubled in early trade following this announcement; Canoo shares had been down 70% this year through Monday’s close. Canoo shares finished Tuesday’s session up 53%.

  • Shares of ServiceNow (NOW) fell as much as 11% in morning trade after analysts said comments from CEO Bill McDermott last night on Mad Money suggested a more downbeat outlook for the software business. ServiceNow shares finished the day off 13%.

  • Peloton (PTON) shares were up about 3% after the company said Tuesday it plans to stop all in-house bike production as the company attempts to turn around its business after the COVID-related boom. Peloton shares gained 3.7% on Tuesday.

  • LoadDepot (LDI) shares were up more than 20% after the company announced plans to lay off staff and focus on the purchase and cash-out refi business amid a slowdown in housing; shares of the company finished higher by 14% on Tuesday.

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