Dow erases 360-point loss to eke out positive finish after Powell testimony

The stock-market finished mostly higher on Tuesday as stocks managed a powerful recovery in the final hour of trade on comments made by Federal Reserve Jerome Powell Chairman in testimony in front of the Senate Banking Committee. The Nasdaq Composite Index COMP, -0.50%, closed off 0.5% at around 13,465, after sinking nearly 4% earlier Tuesday to an intraday nadir at 13,003.98, FactSet data show. The move had pushed the Nasdaq down below its 50-day moving average at 13,246.74. A close below that level would have marked the first time the technology-laden benchmark finished beneath the short-term trend line since late October. Meanwhile, the Dow Jones Industrial Average DJIA, +0.05% closed up less than 0.1% at 31,537 after being down by as many as 362 points or 1.2%, marking the biggest comeback for the blue-chip index since Dec. 21 when it fell 1.4% and ended 0.12% higher, according to Dow Jones Market Data. The S&P 500 index SPX, +0.13% ended up 0.1% at about 3,881 after hitting an intraday low at 3,805.59, notching its biggest comeback since June 5 when it fell 2.48% to end up 0.8%. Powell in his first of two days of semi-annual congressional testimony said “the economy is a long way from our employment and inflation goals.” And the chairman emphasized that the Fed will continue to support the economy with interest rates and asset purchases until substantial progress is made. Markets had been on edge as the 10-year Treasury note TMUBMUSD10Y, 1.349% had jumped to around 1.36%, around its highest level in about a year, raising the prospects of higher borrowing costs for companies and individuals. Technology shares are particularly sensitive to the move in rates because valuations there are considered rich.


Author: admin

Leave a Reply