STOCKS END CONTINUE TO LOWER ON WALL STREET
Following a volatile trading day, stocks on Wall Street closed lower on Tuesday. There was a 1.2% decrease in the S7P 500; however, it regained its midday drop, estimated at a 2.8% drop. The largest market drags turned out to be the technological companies.
From the first trading day, the index has dropped lower consistently, and the fall is estimated at 9.2% from the record high at the beginning.
Rising inflation has caused the market to be jittery. The lowering of the market is also due to the increasing geopolitical tensions. The question is, will the Federal Reserve’s actions for curbing inflation to improve the market situation be in time to save the drop.
Similarly, US Stocks whipsawed between diminishing returns and modest gains. The tech companies have been the most vulnerable and interest rate-sensitive. By evening, all three major US stock indexes had closed lower.
The senior portfolio manager at GLOBALT in Atlanta questioned whether it was time to sell off for the protection of assets or to buy to benefit from the drop. Since yesterday, there has been a battle raging in the upward and downward movement. The Bellwether index closed more than 10% lower, and a record low was also seen on January 3rd.
Drops have been experienced by Nasdaq, Dow Jones, and S&P 500 at 2.28%, 0.19%, and 1.22%, with a loss of 315.83 points, 66.77 points, and 53.68 points, respectively.
Supply-chain challenges and the struggle to recover from the global health crisis have been the ultimate downfall with most companies.
The FOMC meeting on Tuesday convened to discuss the two-day monetary policy. The Federal Open Markets Committee meeting scrutinized and concluded the meeting with a Q and A session. The chairman of the Fed, Jerome Powell, clarified the timeline of the Central Bank for hiking interest rates to fight off inflation.
The uncertainty in the market is rising, owing to the geopolitical tensions. The causes of these tensions include NATO putting its forces on standby. The Russian Force built up at the Ukraine border has also placed the United States Troops on high alert. Due to these tensions, crude oil prices escalated owing to the supply shortage.
Among the 11 major S & P 500, energy remained the top gainer, while the tech companies suffered the most losses. There was a 6% decline from the quarterly revenue reported at the General Electric Co due to the disruptions in the global energy supply. Even the shares of Microsoft declined 5% at the quarterly report.
