By Yasin Ebrahim

Investing.com – The S&P 500 fell Tuesday, paced by a Tesla-led slump in consumer discretionary stocks and weakness in financials as U.S. Treasury yields slipped following signs of slowing inflation.

It fell 0.6%. The Nasdaq dropped 0.7%, 228 points.

Tesla (NASDAQ) dropped nearly 11% on Monday, adding to its 10% decline from Monday. Investors anticipate that Tesla CEO Elon Musk will sell 10% of his equity in electric vehicle manufacturer after supporters backed it in a recent Twitter poll.

General Motors (NYSE) and Ford Motors (NYSE), also contributed to the industry’s decline.

Due to weakness in banks stocks, financials suffered from a decline in U.S. bond yields. This was in response to signs of slowing inflation.

Lincoln National (NYSE:), Prudential Financial (NYSE:), Wells Fargo (NYSE): were less than 1%

Wholesale inflation increased 0.5% in September. This was below expectations of a gain of 0.6%. However, it was below estimates.

“Core goods inflation, however, looks to be peaking […] this is not definitive, yet, but it is encouraging, at the margin,” Pantheon Macroeconomics said in a mote.

Energy brushed aside rising oil prices because investors took some profit from the rise in Diamondback Energy, Occidental Petroleum and other stocks. Devon Energy (NYSE:

Following a 2.2% increase, industrials outperformed other markets. General Electric (NYSE:), after the conglomerate revealed plans for a split into three businesses.

GE plans to split its operations into aviation, health care and energy. However, it will eventually concentrate on the latter with plans for energy and health care sales in 2023/2024.

However, corporate earnings showed mixed results.

PayPal (NASDAQ) dropped 12% following mixed results for its third quarter. The payments company missed revenue estimates and guidance.

Wall Street analysts had mixed reactions to the quarter’s results. Morgan Stanley lowered its target stock price from $340 down to $265 but retained its overweight rating.

 “PayPal is being adversely impacted from hangover impacts of the pandemic, [which is] creating a bigger drag on growth than we had previously anticipated, negatively impacting our ’22 estimates,” Morgan Stanley Note from (NYSE:).

Palantir Technologies (NYSE) plunged over 9%, despite reporting results for the third quarter that beat Wall Street estimates.

Roblox (NYSE 🙂 was a standout performer, climbing 35% following reporting stronger-than-expected Q3 numbers. This result was attributed to stronger user activity, despite pandemic restrictions being eased and back-to school seasonality.

Another story: The speculation about Jerome Powell’s future as Federal Reserve Chairman intensified in light of a Bloomberg report claiming that President Joe Biden has interviewed Fed Governor LaelBranchard for consideration to the top position.