U.S. Stocks Finish Reduced – Recovering from Losses
U.S. stocks finish reduced – Broad sales surge in the S&P 500 fell 2% in the early period. However, in the late afternoon, the Burst Oriented Purchasing Index lost only 0.1%. Dow Jones Industrial Average after falling 1.6%; Decreased by 0.45%. The Nasdaq rose less than 0.05% after falling 2.7%.
The sale last week was followed by the latest setback. Investors have replaced the holding in anticipation that the Federal Reserve will raise interest rates this year. Along with other steps aimed at reducing inflation. Wall Street is trying to understand better when and how much it will lift Fed rates.
T.D. Ameritrade’s chief strategist said the market was still shaken by uncertainty. Experts predict that volatility will remain high during the rest of the first quarter. The S&P 500 fell to 4,670.29, for a total of 6.74 points. The drop increased the index loss series to five days. This is about 2.6% lower than the all-time maximum recorded a week ago. The Dow fell to 36,068.87, for a total of 162.79 points. Nasdaq rose to 14,942.83 by 6.93 points; That ended a four-day losing streak. Shares of small companies have lost their place again. Russell 2000 fell 0.4% to 2.171.15, for a total of 8.66 points.
With the increase in treasury revenues, sales began to lose momentum. The 10-year treasury reached 1.84%; Before returning to 1.76% by noon. When bond yields rose in the early period, tech stocks were the most significant hurdle on the S&P 500.
U.S. Stocks and Expectations
Higher interest rates for investors; Expensive tech companies; also makes the stocks of other expensive growing companies less attractive. The sector is shrinking due to the growth of bond yields. The tech sector was the most significant weight on the market through January.
Major tech stocks have a significant impact on the S&P 500. The technology sector accounted for 29.2% of the S&P 500. Higher interest rates can help overcome high inflation. In addition, it will complete the conditions that have made financial markets easy for many investors since the beginning of 2020. The Fed has said it will accelerate the reduction in bond purchases, which will keep interest rates low.
Banks, industrial stocks, and a mix of companies accounted for the largest share of the S&P 500 decline on Monday; These losses were controlled by advances in technology, healthcare, and communications supplies. Lululemon Athletica fell 1.9%; After investors warned that the increase in virus cases affected the financial results of the fourth quarter. Cardinal Health fell 5.9% due to supply chain problems for the medical segment; Which significantly reduced profits.
Investors will have a busy week with corporate earnings and economic reports. The Department of Labor will release an update on Wednesday on how inflation affects prices. JPMorgan Chase, Citigroup, and Wells Fargo will release the data on Friday.
Asian Shares
Asian stocks fell on Tuesday; After retreating to Wall Street. Investors watch the growing number of viral cases, especially in China, where a third city has already closed. Such delays could affect trade across the region as well as other activities. Toyota and other large companies were hoping for semiconductor chips from China and Asia and restoring other products’ supply. The reason for the hope was vaccination. However, the recent rise in infections by the Omicron variant has dashed hopes.
The incidence of COVID-19 in China is increasing day by day. Additional restrictions have been introduced to curb the spread before the Winter Olympics in February. The Nikkei 225 fell to 28.222.48 and was down 0.9%. Kospi reached 2.927.38. The Australian S&P/ASX 200 fell to 7.390.10. The Hang Seng failed to 23,624.11, up 0.5% in total, with the Shanghai Composite Index falling to 3,564.61.
In the New York Mercantile Exchange, the price of US-based commodities in electronic trading on the New York Mercantile Exchange was $78.82 per barrel, up 59 cents. Brent crude rose 46 cents; The total was $81.33. The U.S. dollar rose to 115.22 against the Japanese yen. The euro rose to $1.1336.
