The Dow plunges 450 points as Tesla and health stocks sink, oil spikes

The Dow Jones Industrial Average, which almost touched the 40,000 mark just a few weeks ago, was firmly in the red on Tuesday. The index had dropped 450 points, or about 1.1%. The S&P 500 also fell 1% on Tuesday, and the Nasdaq was down 1.5%.

The crypto market was also bleeding Tuesday, with Bitcoin dropping below $65,000.

Here’s what else is happening in the markets before midday.

Oil prices rise

Oil prices reached their highest level since October amid tensions in the Middle East and a Ukrainian drone strike on a major Russian oil refinery.

Brent crude, the world’s oil benchmark, jumped as much as 1.8% to $89 per barrel, the highest since September. And West Texas Intermediate crude, the U.S. benchmark, also climbed 1.8%, reaching a five-month high of $85 per barrel.

Health stocks sink

Among the worst stock performers Tuesday morning were health insurance companies, including Humana, CVS Health, UnitedHealth, and Elevance Health. They took a hit after federal regulators didn’t raise payments for Medicare plans above industry expectations.

Humana stock fell 14%, CVS Health dropped 8.5%, and UnitedHealth dipped 6.8%.

More bad Tesla news

Tesla on Tuesday said it delivered 386,810 electric vehicles over the first three months of 2024, falling wildly short of Wall Street’s expectations.

Tesla stock dropped almost 6% in Tuesday morning trading after the company announced its poor first-quarter deliveries. Shares have fallen more than 33% so far this year, making Tesla the worst performer in the S&P 500. The company is also no longer one of the top 10 U.S. companies by market capitalization, trailing behind Visa, JPMorgan Chase, and weight-loss drug maker Novo Nordisk.

The 10-year Treasury hits a 2024 high

The 10-year yield, which determines mortgage and credit card rates, rose to 4.386% Tuesday, surpassing February’s high of 4.352%. That’s the highest level so far this year.

The robust performance of the manufacturing sector and the hope for interest rate cuts might have contributed to the rise.

-William Gavin and Bruce Gil contributed to this article.

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