Lithium producer Albemarle saw its shares plummet more than 11% on Tuesday after announcing a share offering of $1.75 billion. The company plans to use the proceeds from the offering to expand its lithium operations in Australia and China, where lithium is a key component in electric vehicle batteries. The drop in Albemarle’s shares comes as battery metal prices, including lithium, have declined significantly over the past year.
Meanwhile, the iShares U.S. Aerospace & Defense ETF hit an all-time high during Tuesday’s session, rising 0.3%. AeroVironment led the fund higher, surging nearly 25% on strong earnings and guidance. The ETF is up over 2% since the start of the year.
In the cryptocurrency world, Bitcoin reached a record high above $69,000 on Tuesday, breaking a previous record set in 2021. The surge in Bitcoin’s price comes amid excitement around Bitcoin ETFs and an upcoming halving event.
On the economic front, the ISM services index declined slightly in February, with a sharp drop in the prices measure. The index fell to 52.6, below expectations, indicating slower activity in the services sector. The prices index also saw a significant decline, although it still showed growth.
UBS expressed confidence that investor euphoria is not as severe as during the dot-com bubble in the late 1990s. The firm remains positive on future market performance despite the major indexes sitting near record highs.
Overall, the market opened lower on Tuesday, with the Dow down 0.3%, the S&P 500 slipping 0.4%, and the Nasdaq Composite shedding 0.8%. However, nearly 1 out of 5 S&P 500 stocks hit 52-week highs on Monday, including major names like Nvidia, Disney, and JPMorgan.
In other news, Target reported better-than-expected earnings, sending its shares up 7%. Apple, on the other hand, saw a 2% drop in premarket trading after reports of weak iPhone sales in China. AMD also fell after a regulatory snag on a chip intended for sale in China.
Tata Motors announced a split of its commercial and passenger vehicle arms, leading to a 7% climb in its shares. Meanwhile, China’s defense stocks jumped as the country announced a 7.2% increase in defense spending for 2024.
Gold futures crossed $2,100 to hit record levels, with spot rates inching closer to all-time highs. The utilities sector stood out as the top performer on an otherwise downbeat day for stocks, while gold’s ascent lifted miners ETF to its best day in 2024.
Overall, the market continues to see fluctuations and shifts in various sectors, reflecting the dynamic nature of the global economy and financial markets.
