Investing.com – Snap sustained further losses on Tuesday, as investors continued to dump shares of the social media firm, after several analysts initiated a bearish view of the tech company.
Shares of Snap Inc (NYSE:SNAP), which closed below its opening price on Monday, lost more than 12% by 15:03 ET, as the initial euphoria surrounding the company’s first few days of trade since its IPO appears to have faded.
On Monday, Wall Street analysts’ initiated coverage on Snap with a rating of “sell” and warned that Snap's share price was overvalued.
Meanwhile, the Dow and S&P are on track for their first two-day losing streak since January 2, as investors considered the prospect of a March rate hike while healthcare stocks tumbled after a warning from President Donald Trump.
Healthcare stocks, started the session on the back foot, after President Donald Trump claimed on Tuesday that he will bring drug prices “way down”.
Trump’s tweet supported his earlier statement in January, when he claimed that pharmaceutical companies are “getting away with murder” in what they charge the government for medicine.
Merck & Company Inc (NYSE:MRK), Pfizer Inc (NYSE:PFE) as well as a slew of European household pharmaceutical stocks sank lower.
Meanwhile, economic data had little impact on U.S. equities, after data showed the U.S. trade deficit grew in January to its widest monthly level in almost five years.
The commerce department said Tuesday, the trade gap widened by 9.6% to $48.5 billion in January, the highest level since March 2012, and in line with economists’ forecasts.
The Dow Jones Industrial Average traded 0.14% lower at 20,924. The S&P 500 shed 0.32% and the Nasdaq Composite traded 0.12% lower at 5,840.