New York: Wall Street receded on Tuesday as investors shifted from megacap growth stocks, but the sale was eased on the relief of Federal Reserve Chairman Jerome Powell.
All three major US indices were in the red. This helped push the index to record levels despite the economic blockade due to a decline in market-leading tech companies and companies adjacent to tech.
Tim Grisky, Chief Investment Strategist at Inverness Counsel in New York, said: “Many of the’pandemic plays’that have seen large-scale growth will slow down. “But I don’t think it’s gone.”
“Growth does not stop after the pandemic.”
Apple Inc, Amazon.com, and Microsoft Corp were one of the heaviest weights on the S & P 500, and more seriously, the technology-intensive Nasdaq.
Federal Reserve Board Chair Jerome Powell argues that central bank financial support eases concerns that it increases the risk of an asset bubble expansion and that central bank easing monetary policy will be maintained “for some time” did.
Investors said the economic recovery was “uneven and far from perfect” as the introduction of the vaccine suppressed the pandemic, Powell said in a prepared statement prior to the Senate Banking Commission testimony. Added that it mostly corresponds to the expected rebound.
Matthew Keeter, Managing Partner of the Keeter Group, a wealth management company in Lenox, Massachusetts, said: “Looking back at (Powell’s) initial tenure, there was ambiguity about where the Fed stands.” But last year, in response to a pandemic, he communicated his commitment to a stable market and full employment. I did a great job. “
The Dow Jones Industrial Average fell 67.55 points (0.21%) to 31,454.14, the S & P 500 fell 15.81 points (0.41%) to 3,860.69, and the Nasdaq Composite Index fell 199.48 points (1.47%) to 13,333.57.
Of the 11 major sectors of the S & P 500, five were in the negative territory, with consumer discretionary and tech stocks suffering the highest loss rates.
Tesla Inc plunged 3.8% into the deficit territory this year and was down in the tech sellout and Bitcoin decline of 13.9%. Tesla recently invested $ 1.5 billion in cryptocurrencies.
Cryptocurrency miners Riot Blockchain Inc and Marathon Patent Group Inc plunged 24.0% and 22.7%, respectively, and Bitcoin Bank Silvergate Capital Corp fell 23.3%.
Home Depot Inc, a home remodeling retailer, posted higher-than-expected quarterly profits. However, questions have been raised as to whether the surge in sales caused by home consumers working on their own projects in the COVID blockade will continue to be sustainable. Its share was Dow’s biggest resistance, down 3.4%.
Smaller rival Lowe’s Companies Inc, which is expected to report results early Wednesday, fell 2.7%.
The diminishing issues outweigh the ongoing issues on the New York Stock Exchange at a ratio of 2.30: 1. On the Nasdaq, a 4.04 to 1 ratio supported the decline.
The S & P 500 recorded 46 new 52-week highs and no new lows. The Nasdaq Composite recorded 137 new highs and 53 new lows.
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Wall Street recedes, technicians squeeze
Source link Wall Street recedes, technicians squeeze