The tech-heavy Nasdaq index fell 2.35%, while the broader S&P 500 index fell 0.81%.

The Dow Jones managed to finish in the green, up 0.15%.

Investors particularly shed technology and growth stocks, negating the semblance of momentum that had driven Monday's session.

For Angelo Kourkafas, of Edward Jones, it was particularly Snap's earnings warning, Monday after the stock market, "which weighed on the technology sector".

The parent company of the social network Snapchat indicated that its turnover and its results for the second quarter would likely be lower than the low end of the range initially announced.

Amputated by 43.08% of its capitalization in a single session, Snap took with it the entire segment of internet players whose model is based on advertising, from Meta (-7.62%) to Alphabet (- 5.14%), via Pinterest (-23.64%) and Twitter (-5.55%).

"It's not that Snap is a heavyweight in terms of capitalization ($20 billion only) or influence in tech," explained Angelo Kourkafas, "but it's a signal that the headwinds are blowing harder and harder."

Growth stocks, subject to extreme volatility for several months, were also caught in the storm, like Lyft (-17.27%), Tesla (-6.93%) or Uber ( -9.38%).

The Dow Jones, meanwhile, has managed to keep its head above water thanks to so-called defensive stocks, that is to say stocks deemed to be less sensitive to economic cycles.

Coca-Cola (+1.85%), Procter & Gamble (+1.78%) or McDonald's (+2.74%) did well.

The impression of an economy in retrograde was confirmed by the PMI indices for services and manufacturing activity, which both came out in May at a level lower than the previous month.

The mood was further clouded by the 16.6% drop in new home sales in April in the United States, taking analysts by surprise, who had expected a slight decline of 1.7%.

In a still very volatile market, investors are constantly "reassessing" their economic trajectory forecasts, according to Tom Hainlin of US Bank Wealth Management.

The question is whether monetary tightening by the US central bank (Fed) “will lead to a generalized recession or a contraction in corporate earnings that would further depress stock prices”.

For Tom Hainlin, Wall Street is in a transition phase, for lack of conclusive data on the trajectory of inflation, a period which should last at least another month or two, with sessions which see the indices oscillate brutally.

Again playing its role of refuge, after months of decline, the bond market was favored by investors on Tuesday.

The yield on 10-year US government bonds fell to 2.75%, against 2.85% the day before.

Another economic indicator is the distribution sector which, via a new round of figures, confirmed that it was suffering from soaring prices, which is shrinking its margins but is also beginning to handicap consumption.

The ready-to-wear brand Abercrombie & Fitch (-28.58% to 19.09 dollars) was, for example, sanctioned after the publication of a quarterly loss, while analysts expected a small profit.

The group has also lowered its margin targets to take into account the rise in supply and transport costs.

Among the few companies to do well was also Zoom (+5.61% to 94.34 dollars), which although it reported slow growth raised its profit target.

© 2022 AFP