Stocks fell Tuesday, with investors taking a breather after yet another record-setting session on Wall Street. 

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The S&P 500 pulled back to end an 8-session winning streak. A day earlier, the index closed above 4,700 for the first time. And although the Dow and Nasdaq gave back gains as well, the indexes were still perched within view of recent record highs. Shares of Tesla (TSLA) closed lower by 12% in their biggest drop since September 2020, with the stock seeing another day of marked selling after CEO Elon Musk hinted that he may sell some of his stake. 

Equity investors over the past week rode an extended wave of optimism over solid quarterly corporate earnings and economic reports, which came alongside recent positive data for a new COVID-19 antiviral pill from Pfizer (PFE) and the passage of a more than $1 trillion infrastructure bill in Congress. With about 89% of S&P 500 companies having posted quarterly results, the projected earnings growth rate for the index in aggregate stands at nearly 40%, according to FactSet. And this growth rate has continued to creep higher over the past several weeks as more companies topped expectations. 

“I still think it’s all about corporate profits. I know a lot of my peers are concerned that peak earnings growth is behind us,” Marci McGregor, Bank of America Merrill Lynch senior investment strategist, told Yahoo Finance Live. “But I think peak earnings isn’t even a 2022 story. We’re seeing solid consumer demand, a strong U.S. economy, and I think we’re going to have a capex cycle in 2022. And I think that’s all positive for corporate profits, and that underpins this market, in my view.”

Earnings results after market close on Monday came in mixed. Roblox (RBLX) shares surged after posting third-quarter bookings that exceeded Wall Street’s estimates, with the gaming platform growing further even after an initial stay-at-home-related boost in usage. PayPal (PYPL) shares turned lower, however, as investors homed in on the payments company’s disappointing full-year outlook. This overshadowed its announcement of a new pact with Amazon (AMZN) to accept Venmo for payments next year. AMC Entertainment (AMC) also fell despite topping quarterly sales estimates, with the meme stock giving back some gains after a 2,000% run-up so far for the year-to-date. 

In quarterly reports and analyst calls, a host of companies have cited constraints around getting raw materials, filling job openings, managing rising input costs and delivering products and services to end users. 

According to Bank of America, mentions of supply chains on quarterly earnings calls have surged by 360% compared to last year, underscoring the widespread nature of these pressures. These supply-related issues have also contributed to still-elevated inflationary trends. Tuesday’s Producer Price Index from the Bureau of Labor Statistics showed that producer prices rose by 8.6% over last year, matching October’s rate for the fastest on record in data going back to Nov. 2010. 

“I would expect inflation to peak by mid-year 2022. It should remain elevated but it should move lower in the back half of 2022,” Kristina Hooper, Invesco chief global market strategist, told Yahoo Finance Live. “So while this is certainly an issue, it is part of what we should expect coming out of the pandemic. 

“We have gotten out of a burning building, but we should expect that there is a little smoke and water damage as a result,” Hooper added. “That’s really what we’re experiencing with elevated inflation and supply chain disruptions.”

4:02 p.m. ET: S&P 500 ends 8-day winning streak as investors pause after record-setting rally

Here were the main moves in markets as of 4:02 p.m. ET:

  • S&P 500 (^GSPC): -16.44 (-0.35%) to 4,685.26

  • Dow (^DJI): -112.18 (-0.31%) to 36,320.04

  • Nasdaq (^IXIC): -95.81 (-0.60%) to 15,886.54

  • Crude (CL=F): +$2.42 (+2.95%) to $84.35 a barrel

  • Gold (GC=F): +$5.80 (+0.32%) to $1,833.80 per ounce

  • 10-year Treasury (^TNX): -6.5 bps to yield 1.4320%

3:07 p.m. ET: Robinhood’s crypto wallet waitlist has 1.6 million people on it: Robinhood Crypto COO

Robinhood’s (HOOD) Crypto Chief Operating Officer Christine Brown said Tuesday that 1.6 million people are on the waitlist for the company’s crypto wallet. 

Brown, speaking at the Yahoo Finance-Decrypt cryptocurrency event on Tuesday, underscored the significant retail interest in the trading platform’s crypto offerings. The company first announced plans for a cryptocurrency wallet back in September, and is set to officially launch at the beginning of next year. Some users, however, have already received access to the alpha version of the product, Brown added. 

1:27 p.m. ET: Peloton shares drop 3% despite unveiling new strength training product 

Peloton (PTON) shares dropped more than 3% intraday on Tuesday, pacing toward a fourth straight day of losses even after the company revealed a new strength training connected fitness device.

The new product, called “Guide,” adds to the firm’s suite of products that already include at-home stationary bikes and treadmills. The Guide will be sold as a bundle with Peloton’s heart rate armband for $495 in the U.S. and Canada starting next year.

Video: Market check: Stocks dip in intraday trading after record run (Yahoo! Finance)

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The launch, however, did little to assuage Wall Street investors, who already punished the stock with a record drop on Friday following the company’s disappointing third-quarter report. In that, Peloton sharply lowered its full-year forecast, with CEO John Foley saying during the company’s earnings call that Peloton was seeing “a greater than anticipated taper” of website traffic and demand. 

12:25 p.m. ET: ‘There’s very little daylight’ over how monetary policy would be implemented by Brainard vs. Powell as Fed chair: Cowen

Lael Brainard was interviewed for the role of Federal Reserve Chair during a visit to the White House last week, Bloomberg reported, citing unnamed people familiar with the matter.

The question of whether current Fed Chair Jerome Powell will remain in his role, or be replaced by President Joe Biden, has remained a key question for market participants as they try to predict the monetary policy path forward. But changes under a possible Fed led by Brainard, who has typically favored a dovish tilt to policy, may be minimal, some strategists noted. 

“When we think about Brainard versus Powell from a policy perspective, there’s very little daylight in our opinion over how they would approach actual implementation of monetary policy,” Chris Pollard, Cowen managing director, told Yahoo Finance Live. “I guess where there would be differences would be in a macro credential context. But the market reaction now, I think the idea of just pricing some form of incremental change is causing folks to reconsider some of the hawkishness that was priced into forward markets, not just in the U.S. but globally.” 

“Our base case is that Powell retains the chair and that ultimately Lael will end up being in the supervisory role that was exited by Quarles recently,” he added. “But in terms of the policy path that the Fed has embarked on, this taper that we started at the beginning of this month … we think that’s going to be unchanged.” 

9:30 a.m. ET: Stocks open mixed as investors take a breather

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): 4,707.89, +6.19 (+0.13%)

  • Dow (^DJI): 36,387.50, -44.72 (-0.12%)

  • Nasdaq (^IXIC): 16,007.08, +24.73 (+0.15%)

  • Crude (CL=F): $82.46 per barrel, +0.53 (+0.65%)

  • Gold (GC=F): $1,829.70, +$1.70 (+0.09%)

  • 10-year Treasury (^TNX): -4.4 bps to yield 1.4480%

8:55 a.m. ET: Producer Price index jumps 0.6% month-on-month, accelerating from September’s 0.5% rise

In another sign of sustained inflationary pressures in the recovering economy, the Bureau of Labor Statistics’ Producer Price Index (PPI) jumped 0.6% in October over September, matching consensus expectations and accelerating from the prior month. 

Over last year, the broadest measure PPI rose 8.6%, matching September’s annual rate for the fastest on record in data going back to 2010. Excluding more volatile food and energy prices, the PPI was up 6.8% year-over-year, coming in as expected.

7:43 a.m. ET: Stocks head for a mixed open, Nasdaq futures outperform

Here’s where markets were trading Tuesday morning:

  • S&P 500 futures (ES=F): +1.00 point +0.02%), to 4,695.00

  • Dow futures (YM=F): -31 points (-0.09%), to 36,281.00

  • Nasdaq futures (NQ=F): +30.75 points (+0.19%) to 16,358.50

  • Crude (CL=F): +$0.56 (+0.68%) to $82.49 a barrel

  • Gold (GC=F): -$2.60 (-0.14%) to $1,825.40 per ounce

  • 10-year Treasury (^TNX): -3.2 bps to yield 1.465%

7:40 a.m. ET: GE shares jump after announcing it will split to form three companies

Industrial conglomerate General Electric (GE) saw its stock jump Tuesday morning after announcing plans to cleave into three separate, publicly traded companies. These will be focused on aviation, health care and energy.

According to the company’s release, GE will spin off its health care unit by early 2023, and GE will retain a stake of 19.9% in this new firm. Meanwhile, it will also combine GE Renewable Energy, GE Power and GE Digital into one business in early 2024. The company currently known as GE will then become an aviation-focused company, with Larry Culp remaining as CEO. 

6:17 p.m. ET Monday: Stock futures trade mixed

Here’s where markets were trading Monday evening:

  • S&P 500 futures (ES=F): -3.5 points (-0.07%), to 4,690.50

  • Dow futures (YM=F): -21 points (-0.06%), to 36,291.00

  • Nasdaq futures (NQ=F): -14.5 points (-0.09%) to 16,313.25

© Provided by Yahoo! Finance NEW YORK, NEW YORK – NOVEMBER 05: Traders work on the floor of the New York Stock Exchange (NYSE) on November 05, 2021 in New York City. Markets were higher in morning trading as new Labor Department numbers showed that nonfarm payrolls increased by 531,000 for the month of October, above expectations. The jobless rate is expected to edge down to 4.7%. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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