Tech sale hangs over Wall St. as Powell warns of takeover By Reuters


Β© Reuters. The spread of coronavirus disease (COVID-19) in New York

Par Devik Jain et Sagarika Jaisinghani

(Reuters) – The S&P 500 and Nasdaq retreated on Tuesday as Federal Reserve Chairman Jerome Powell warned that the US economic recovery remained far from complete, with a sell-off in some of the biggest tech companies which also weigh on sentiment.

The national rebound could still slide into a downward spiral if the coronavirus is not effectively controlled and growth sustained, Powell said.

β€œThe markets are worried about what the Fed knows we don’t know,” said John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio.

β€œWhat is obvious to us is that small businesses are closing their doors and unemployment remains high in the service sector. The Fed wants to aggressively attack these two countries with more fiscal stimulus. ”

Comments from officials that a stimulus deal was still possible lifted all three major stock indexes on Monday, helping them recoup losses last week that were sparked by news that President Donald Trump had contracted COVID-19 .

Trump said on Tuesday he felt “really good” when he returned to the White House after a three-day stay in hospital where he received experimental treatment for the disease.

Six of the top 11 S&P sectors were up, with the energy index beaten () following a 2% rise in oil prices.

A rotation in value-related sectors () such as industrials () helped boost the blue chip Dow, but the Nasdaq moved further away from all-time highs following a drop in tech mega-cap stocks heavy. Inc (O :), Apple Inc (O :), Facebook Inc (O πŸ™‚ and the owner of Google Alphabet Inc (O πŸ™‚ fell 0.8% to 1.6% after the announcement of a US House of Representatives antitrust report containing a “thinly veiled call for dissolution ” companies.

The decline in their stock prices caused the S&P 500 Growth Index () to drop 0.4%.

β€œWhen you’re in bubble territory with higher volatility, the market is very sentiment driven,” said Matt Hanna, portfolio manager at Summit Global Investments.

β€œThe feeling has changed a bit, it’s not as optimistic as it was a few months ago. ”

At 12:37 p.m. ET, the Dow Jones Industrial Average () was up 0.10%, the S&P 500 () was down 0.06%, and the Nasdaq Composite () was down 0.26%.

A 1.2% jump helped the S&P banking sub-index <.spxbk> Outperform the benchmark as long-term US Treasury yields hit four-month highs.

Boeing Co (N πŸ™‚ fell 3.0% after the aircraft manufacturer lowered its 20-year forecast for aircraft demand due to the fallout from the COVID-19 pandemic.

US-listed shares of BioNTech (O πŸ™‚ jumped 8.0% after the European health regulator announced it had started a real-time review of the COVID-19 vaccine developed by the biotech company German and American drug manufacturer Pfizer Inc (N :). Pfizer shares fell 0.1%.

Actions of audio device manufacturers Sonos Inc (O πŸ™‚ and Logitech (S πŸ™‚ fell 6.8% and 5.1%, respectively, after their speakers were removed from Apple’s online stores.

The escalating problems outnumbered downgradeers nearly 2 to 1 on the NYSE and Nasdaq.

The S&P Index recorded 25 new 52-week highs and no new lows, while the Nasdaq recorded 97 new highs and nine new lows.


Please enter your comment!
Please enter your name here