Stocks tumble as cryptocurrencies unravel

U.S. equity markets were under pressure Wednesday as technology shares bore the brunt of the selling while cryptocurrencies were pummeled.

The Dow Jones Industrial Average was lower by 402 points, or 1.18%, while the S&P 500 and the Nasdaq Composite were down 1.27% and 1.53%, respectively. 

In stocks, Tesla Inc. and MicroStrategy Inc. were in focus as bitcoin tanked by as much as 26%, hitting a session low of $31,663 per coin. Both companies have purchased billions worth of the cryptocurrency. Other cryptos, including ethereum and dogecoin were also trading sharply lower. 

Elsewhere, Target Corp. reported quarterly revenue spiked 23% as same-day services like curbside pickup provided a lift. The retailer sees mid-to-high single-digit comparable sales growth in the current quarter and single-digit growth in the final two quarters of the year. This follows Walmart's strong results reported on Tuesday.

Lowe’s Companies Inc. said quarterly same-store sales jumped 26% year over year as Americans continued to make home improvements amid the pandemic. The growth trailed that of rival Home Depot Inc., which on Tuesday reported a 31% increase. 

Meanwhile, Southwest Airlines Co. reduced its average core cash burn forecast by $1 million per day amid improving leisure travel demand spurred by vaccinations and an easing of travel restrictions. Additionally, the airline boosted its quarterly fuel cost forecast by 5 cents per gallon to between $1.90 and $2. 

In commodities, West Texas Intermediate crude oil lost $1.73 to $63.76 per barrel and gold added $1.90 to $1,869.90 per ounce.