By Yasin Ebrahim

Investing.com — Dow recovered from more than 500 point intraday loss Tuesday after Snap’s biggest single-day loss put technology stocks back on the defensive. 

The gained 0.2%, or 48 points, the was down 2.4%, and the fell 0.60%.

Snap (NYSE:) fell more than 43% after the social media company cut its guidance on revenue and profitability, citing a faster-than-anticipated deterioration of the macroeconomic environment.

The warning from Snap “will sound the alarms on the deteriorating macro’s evolving effects on digital advertising,” RBC said in a note after slashing its price target on the stock to $17 from $25.

Social media stock shares were shocked by concerns about the weaker advertising budget backdrop. Meta Platforms (NASDAQ) dropped more than 7 percent, Twitter (NYSE) plunged over 5% and Pinterest (NYSE) plummeted more than 23%.

Zoom Video Communications After the software company posted better-than expected results, (NASDAQ) opted to sell and instead raised its annual guidance. The stock soared more than 5 percent.

Companies continued to raise concerns about inflation and the outlook for growth elsewhere on earnings.

Abercrombie & Fitch (NYSE:) plunged more than 28% as the retailer cut its sales outlook for the year after reporting a surprise loss owing to rising transportation and product costs.

AutoZone’s (NYSE:) shares rose by more than 5% after better-than-expected quarter-end results.

Data showing that the market for homebuilders fell to its lowest level since April 2020 was a sign of pressure. Mortgages remain at their highest since 2009.

“The Federal Reserve is pumping the brakes; the most interest-rate sensitive sectors, notably housing, are cooling,” Grant Thornton said in a note.

Toll Brothers (NYSE:) Reports quarterly results Tuesday after market closes. The decline was more than 4 percent Lennar (NYSE:) and KB Home (NYSE:) were also in the red.