US stocks fall as investors await Federal Reserve policy meeting and analyze earnings, leaving the market trading for another day.
The S&P 500 fell 1.7% on Tuesday, while the tech-savvy Nasdaq composition fell 2.5%. Blue Chip Dow Jones Industrial Average fell 0.9 percent.
The move follows a reversal on Monday, with major indexes losing ground to post big returns. For the first time in history, Dow lost more than 1,000 points. Nasdaq has seen the biggest change since 2008, with trade falling more than 4% in a day.
Concerns about the federation have pushed investors out of the stock market and fueled concerns over the weakening of the small bucks in the market, eliminating one source of support for the stock market. Monday’s return shows that many investors have been able to move quickly on the beaten track, although most sentiment seems to be fading by early Tuesday.
“My fear is going down,” said Zhiwei Ren, manager of Penn Mutual’s property management portfolio. “It’s going to be a big week.”
Behind the sell-off: Federal Reserve fears will raise interest rates this year and eliminate market stimulus in recent years. Some investors have said they do not expect the so-called Fed to either cut the federation rates or stop inflation in the face of market turmoil. Others were more optimistic.
JPMergan strategists wrote to their clients on Monday:
General Electric lost more than 6 percent after a $ 3.8 billion loss in the fourth quarter, while Reyton Technologies posted analysts’ quarterly earnings decline of 0.5 percent. Meanwhile, 3M shares rose 0.2% after the company performed better than expected.
Market volatility has recently increased as investors worry about how fast it will take to deal with inflation by raising interest rates and lowering their accounts. Meanwhile, revenues have not kept pace with the gains made by investors over the past year, but geopolitical tensions around Ukraine and Russia have weighed on emotions.
Of the companies that have reported so far, 77% have outperformed analysts, says Refinitive. That was not enough to raise stocks. Overcoming earnings in the quarter, the mid-term company fell by half a percentage point, while deficient companies fell by 4%, analysts Morgan Stanley wrote in a note on Monday.
This week, investors will be reviewing the results of a major overhaul of technology such as Microsoft,
Apple and Tesla. According to Goldman Sachs, one of the top performers in the S&P 500 this year.
According to Nicola Cola, founder of Data Trek Research, individual investors appear to be buying stocks on Monday, including Tesla, Apple, NVD and Microsoft. That helped the market record its historic return.
While revenue from 2021 is a source of strength for equity markets, recent results show companies beginning to struggle with inflation and slowing economic growth, said CIBC Private Investment Chief Investment Officer David Donabedian.
“We have become accustomed to this cycle of companies blowing more than expected, but that is not happening yet,” he said.
Mem stocks continued to suffer on Tuesday.
Photo die
Spencer Platt / Getty Images
Mem stocks continued to suffer on Tuesday. GameStop and AMC fell sharply by more than 2% each on Monday.
Federal Reserve officials are set to discuss monetary policy in a two-day meeting on Tuesday, including the pace of a nearly $ 9 trillion bond portfolio. Chairman Jerome Paul is expected to use his comments after the meeting to lay the groundwork for interest rates.
Commodities on Benchmark 10-year U.S. Treasury note traded up 1.755% on Tuesday, up from 1.735% on Monday. Bond products move in the opposite direction to prices.
Overseas, Japan’s Nikeki fell by 225 1.7 percent, with major failures including technology and telecom giant software falling more than 5 percent. Australia’s S&P / ASX 200 and South Korea’s Cospos Composite both withdrew more than 2 percent. Hong Kong Hong Singh index fell 1.7 percent.
European stocks rebounded on Monday before the US index moved. Pan-Continental Stockx Europe 600 index rose 0.8% on Tuesday.
-Cuntin Web contributed to this article.
The US dollar has appreciated sharply since 2015. This is good for many American consumers, but it could also have a big impact on stocks and the US economy. WSJ Dion Rabouin explains. Photo Illustration Sebastian Vega / WSJ
Write to Will Horner at william.horner@wsj.com, Rebecca Feng at rebecca.feng@wsj.com and Gunjan Banerji at gunjan.banerji@wsj.com.
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