Stock market sees sharp decline as Tesla and health sectors plummet, oil prices surge by 450 points

Unprecedented Market Turmoil: Dow Jones, S&P 500, Nasdaq and Crypto Slide on Rising Oil Prices and Health Insurance Woes

On Tuesday, the Dow Jones Industrial Average experienced a significant drop of 450 points or about 1.1%, while the S&P 500 and Nasdaq also saw declines of 1% and 1.5% respectively. The crypto market was also down, with Bitcoin dropping below $65,000.

The rise in oil prices due to tensions in the Middle East and a Ukrainian drone strike on a major Russian oil refinery was another factor that affected the market negatively. Brent crude jumped to $89 per barrel, while West Texas Intermediate crude reached $85 per barrel. Health insurance companies such as Humana, CVS Health, UnitedHealth, and Elevance Health saw their stock prices drop after federal regulators did not raise payments for Medicare plans as expected. Humana’s stock fell by 14%, CVS Health dropped by 8.5%, and UnitedHealth dipped by 6.8%.

Tesla delivered fewer electric vehicles than expected in the first three months of 2024, causing its stock to drop almost 6%. The company’s shares have declined by more than 33% this year, making Tesla the worst performer in the S&P 500. The 10-year Treasury yield rose to its highest level this year on Tuesday at 4.386%, surpassing February’s high of 4.352%. This may indicate positive developments in the manufacturing sector and expectations of interest rate cuts.

Overall, these events have had a negative impact on the market and will continue to do so until they stabilize or improve.

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