Stocks fell Tuesday as the markets struggled to sustain a comeback rally following weeks of losses.
The Dow Jones Industrial Average fell 172 points, or 0.5%. The S&P 500 lost 1.4%, and the tech-heavy Nasdaq Composite dropped 2.7%.
Snap shares plummeted more than 36% after the company said it's bracing to miss earnings and revenue targets in the current quarter and warned of a hiring slowdown. Shares of Meta Platforms followed Snap lower, falling 6%, while Pinterest lost 17%.
"Stocks are getting hit hard this morning and the main culprit is the Snap warning from Monday evening," wrote Adam Crisafulli of Vital Knowledge. "Some are a bit incredulous that a relatively small and perennially unprofitable ephemeral social media firm can take down the whole tape, but given how sensitive this tape is, SNAP is able to punch above its weight."
"Tech still dominates the market, both numerically (it remains the biggest weighting) and psychologically, and despite aggressive liquidation in the last couple of months, people still own a lot of it," he added.
Shares of other major tech companies followed Snap lower. Alphabet and Netflix each slid about...
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