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By Kristin Myers, Editor-in-Chief

What's Happening Today

After a brief rebound yesterday, markets are sliding again this morning. Shares of social media company Snapchat are already down about 40% after the company warned that it wouldn't meet revenue forecasts amid a rapidly worsening economic environment, and the news seems to be dragging other social media and tech stocks down with it.

The tech-heavy Nasdaq is down close to 3.6%, with shares of Facebook parent Meta, Google parent Alphabet, and Pinterest all plunging on the heels of the news as well. With just the top eight tech stocks (including Meta and Alphabet) on the Nasdaq comprising close to half of the index's weighting, moves in their stock prices can have an outsized impact on the major averages.

More reports on retail earnings will also come this week, and investors may be looking to see whether the pessimistic outlook reported by Target and Walmart last week is shared by other companies in the sector. Shares of Abercrombie & Fitch are down nearly 30% today after the company posted a loss after being hit with freight and product costs last quarter that were higher than expected. Best Buy also reported earnings, stating that it saw a drop in sales and profits after being hit by higher supply chain costs, among other reasons.

Meanwhile, the housing market is showing further signs of slowing sales as rising interest rates push up borrowing costs for consumers. Sales of new single-family homes dropped to a two-year low in April, down 16.6% from March and 26.9% from April 2021, according to the Census Bureau's latest report released today.

- Kristin

Editors' Picks

New Home Sales Plunge to 2-Year Low (The Balance)

Rising Interest Rates Concern Apartment-Building Owners, Renters (The Wall Street Journal)

Bond Market Flashes Warning Signs (Axios)

Will Gas Prices Keep Going Up? (The Balance)

How Much Equity Do You Need To Refinance? (The Balance)

Learn What Market Indexes Say About Investing (The Balance)

A Guide To Making Money as a Teen (The Balance)

Off the Charts

Locking in a 30-year fixed mortgage rate was highly appealing when rates were at record lows earlier in the pandemic, but now they are hovering near their highest in over a decade. Amid the recent spike, and relentlessly higher home prices, more borrowers are switching to adjustable rate mortgages (ARM) in order to offset higher borrowing costs.

Number of the Day

10% - That's how many U.S. adults are now better off—despite financial setbacks—because of the pandemic, according to a new survey highlighting the unexpected impact.