US stocks attempt to rebound after huge sell-off that sent S&P 500 to lowest level in a year

US stocks attempt to rebound after huge sell-off that sent S&P 500 to lowest level in a year
Traders work the floor of the New York Stock Exchange during morning trading on May 05, 2022 in New York City.Michael M. Santiago/Getty
  • US stocks attempted a rebound on Tuesday after suffering a two-day sell-off that sent the S&P 500 to a one-year low.
  • Risk assets from bitcoin to stocks bounced in early Tuesday trades as interest rates fell considerably.
  • First-quarter earnings results continue to roll-in, and so far 77% of companies that have reported so far have beat profit estimates, according to Fundstrat.

US stocks attempted a rebound on Tuesday after the market fell 4% between Friday and Monday as investors fear an economic recession is around the corner.

Helping fuel the rally in risk-assets on Tuesday was a considerable decline in interest rates, with the 10-year US treasury yield falling 12 basis points to just under 3%.

Meanwhile, first-quarter earnings continue to roll in, with about 88% of S&P 500 companies having already reported results. Of those companies, 77% are beating profit estimates by a median of 8%. Additionally, 72% of those companies are beating revenue estimates by a median of 5%, according to Fundstrat.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

JPMorgan's top strategist Marco Kolanovic is sticking to his bullish guns and thinks investors should take advantage of the recent decline, saying central banks have reached "peak hawkishness" and that the sell-off appears overdone.


The wild volatility in commodities prices is raising the risk of contagion that would hit global financial institutions hard, the Federal Reserve has warned, as it rang the alarm bell over worsening trading conditions in major markets.

Terra Network's luna token plunged by as much as 61% on Tuesday, after sister stablecoin TerraUSD lost its peg to the dollar for the second time in as many days. TerraUSD is an algorithmic stablecoin whose value is fixed to $1. Unlike traditional stablecoins that are backed up by fiat currency and hard assets — including government bonds or even gold — UST, as it's known, has its value set by a computer algorithm.

Grindr, the world's largest dating app for LGBTQ+ people, is slated to go public via a merger with Tiga Acquisition Corp., a special-purpose acquisition company. The company is being valued at $2.1 billion.

Peloton's post-pandemic decline continued on Tuesday, with the stock plunging as much as 20% to a record low after it reported fiscal third-quarter earnings that missed analyst estimates.

West Texas Intermediate crude oil fell as much as much as 0.77% to $102.30 per barrel. Brent crude, oil's international benchmark, fell as much as 0.86% to $105.03.


Bitcoin rose 4.94% to $32,156. Ether prices jumped 5.83% to $2,433.

Gold rose as much as 0.19% to $1,861.60 per ounce. The yield on the 10-year Treasury fell 11 basis points to 2.97%.