PayPal Slumps 20.3%

The US stock market sank after a mixed day of trading on Tuesday.

• The S&P 500 fell 58.63 points, or 0.8%, to 6,917.81.
• The Dow Jones Industrial Average fell 166.67 points, or 0.3%, to 49,240.99.
• The Nasdaq composite fell 336.92 points, or 1.4%, to 23,255.19.

Nvidia, Microsoft, and other influential Big Tech stocks weighed on the market. So did software companies and others seen as potential losers to competitors powered by artificial intelligence, the AP reports. Gold and silver prices bounced higher following their latest sell-off.

Drops of 2.8% for Nvidia and 2.9% for Microsoft dragged the S&P 500 toward its fourth loss in the last five days, even though the majority of stocks in the index rose. That includes a 6.8% climb for Palantir Technologies, which reported bigger profit for the latest quarter than analysts expected. Its forecast for 61% growth in revenue this year also topped analysts' expectations.

• PayPal dropped 20.3% after reporting weaker results for the latest quarter than analysts expected. It also named a new CEO after it said "the pace of change and execution" over the last two years "was not in line" with the board of directors' expectations.
• Pfizer fell 3.3% even though it reported stronger profit for the latest quarter than analysts expected. The pharmaceutical company gave a forecasted range for profit in 2026 with a midpoint below analysts' expectations.
• The Walt Disney Co. slipped 0.2% after it said Josh D'Amaro, head of the company's parks business, will become its next CEO in March.

On the winning side of the market was PepsiCo, which rose 4.9% after the snack and beverage giant's profit and revenue for the latest quarter nudged past analysts' expectations. It also said it would cut prices this year on Lay's, Doritos and other snacks to try and win back inflation-weary customers. DaVita rallied 21.2% after the provider of dialysis and other health care services likewise delivered a better profit for the latest quarter than analysts expected.

Some of the day's strongest action remained in the metals markets. Gold's price climbed 6.1% to settle at $4,935.00 per ounce in its latest swing since its jaw-dropping rally suddenly halted last week. Silver's price, which has been whipping through even wilder moves, rallied 8.2%. Gold and silver prices had been climbing for more than a year as investors looked for safer places to park their cash, but those rallies suddenly gave out last week, and gold's price dropped from close to $5,600 to less than $4,500 on Monday. Silver plunged 31.4% on Friday alone. Analysts say that after gold and silver prices had shot up so much, so quickly, they were bound to fall back at some point, particularly with so many investors piling in to use gold as a way to bet on continued weakness for the US dollar.