US stocks slip as social media leads tech sell-off with Fed chief Powell due to speak

• US stocks dropped Tuesday, as social platform Snap plunged after warning on the economy.
• Snap's CEO said the company faces rising inflation and interest rates, supply-chain snags, and war impacts.

US stocks dropped Tuesday as a profit warning from Snap sent reverberations through the broader market and fueled concerns about the economy.

The Nasdaq led the market lower, with Snap's warning dragging down other social-media and tech stocks.

"Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more," Snap CEO Evan Spiegel wrote in a memo. "We will slow our pace of hiring for unopened roles for the remainder of the year, as well as push some planned hiring into next year."

Tuesday morning, the social media platform lost as much as 34.48%.

Later today, Fed Chair Jerome Powell is set to speak at the Reservation Economic Summit.

Here's where US indexes stood as the market opened 9:30 a.m. on Tuesday:

• S&P 500: 3,932.37, down 1.04%

• Dow Jones Industrial Average: 31,736.71, down 0.45% (143.53 points)

• Nasdaq Composite: 11,316.55, down 1.90%

The Fed this month pledged to start reducing its $9 trillion balance sheet in June after snapping up bonds during the pandemic. JPMorgan CEO Jamie Dimon said the Fed's bond-buying pullback is an unprecedented headwind for markets, and investors won't know what to expect.

In an op-ed column Monday, economist David Rosenberg forecasted that the S&P 500 will crash a further 17%, and compared it to the summer of 2008.

Overseas, Russia's ruble continued to rally despite Moscow easing a key capital control. The ruble has been the top-performing currency against the dollar this year, and has made a 13% gain on the greenback over the past five days.

The euro rallied too, and European Central Bank chief Christine Lagarde said it is at a turning point on interest rates but will not rush ending negative rates.

Meanwhile, Russia's biggest oil company — state-owned Rosneft — slashed its production levels amid wartime sanctions and self-sanctioning.

Oil moved lower, with West Texas Intermediate down 0.20% to $110.11 a barrel. Brent crude, the international benchmark, dipped 0.04% to $113.42 a barrel.

Gold edged higher 0.71% to $1,861.20 per ounce. The 10-year yield dropped 6.5 basis points to 2.79%.

Bitcoin climbed 0.05% to $29.252.46.