MAJOR United States indices ended on Tuesday (Mar 5) in a slump, as key tech names lost ground and traders looked ahead to remarks by the central bank chair later in the week.
The tech-heavy Nasdaq Composite Index lost 1.7 per cent to 15,939.59, with Apple, Microsoft and Tesla all retreating.
The Dow Jones Industrial Average slipped 1.0 per cent to 38,585.19, and the broad-based S&P 500 stumbled 1.0 per cent as well, to 5,078.65.
All eyes are on Federal Reserve chair Jerome Powell’s visit to Congress, where he is expected to be grilled by lawmakers on Wednesday and Thursday, including over when the central bank could start lowering interest rates.
The Fed’s benchmark lending rate remains at a 23-year high, after policymakers lifted it rapidly to rein in stubborn inflation.
Analysts are expecting some consolidation in the market after mega cap stocks led gains recently, noted Briefing.com.
But Kurt Spieler, chief investment officer at FNBO, believes the stock market can still climb slightly higher in the short term.
“In January we had a down day and the market quickly resumed its upward trend. It still feels like there’s a lot of momentum behind it,” he said.
On Tuesday, survey data also showed activity in the services sector cooling in February.
Investors are looking ahead to other economic indicators this week, including private sector and official employment data. AFP
