Major Indices dropped following major sell-off led by Tech related companies
The testimony of Fed Chief Powell and Treasury Secretary Yellen gave investors a different perspective, leading to a swift change in market direction. Amongst what was discussed, Powell indicated that the stimulus package amounting to $1.9 trillion will cause an unexpected inflation, though he also said the bank already has a contingency plan if they are needed.
Here’s an overview of market movements:
• Dow Jones Industrial Average lost 308.05 points or 0.94% closing at 32,423
• NASDAQ Composite Index tripped down by 149.85 points or 1.12% closing with 13,228
• S&P 500 Index slid down by 30.07 points or 0.76% ending at 3,911
• Gold upped by 0.19% at 1,728.40
• Silver tumbled down by 0.23% at 25.17
• Crude Oil gained 1.07% to close with 58.38
NASDAQ, which lost the most out of the e major indexes, was heavily affected by Chief Powell’s statement that the U.S. economy has much improved, giving investors a different focus. With this statement, tech bigwigs aren’t lost their advantage with how bullish the outlook for value and cyclical stocks is. On the other hand, NASDAQ futures bounced back by 0.26% and closed at 13,039.75.
The Dow Jones Industrial Average (DJI) was pulled down by Caterpillar as they tumbled down by 3.4% in the afternoon slide. Another thing that affected their performance for Tuesday was the exhaustion of cyclical stocks. The Dow Futures, on a brighter note, gained 0.05% closing at 32,323.00.
S&P 500 was largely affected infrastructure costs that implied to investors negatively. Though they lost grounds at Tuesday’s market close, S&P futures still went up by 0.04% at 3,901.50.
A brief update on the international stock market, Stoxx Europe 600 is down by 0.20% or 0.86 points at 423.31, largely due to vaccine rollout delays and additional quarantine locations being announced. China’s Shanghai tripped by 1.3%, Hong Kong’s Han Sheng down by 2.1% and Japan’s Nikkei 225 slipped by 2.04%.
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