Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. He was answering questions in today’s testimony at the joint Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act.
The Fed Chair moved his bias toward the hawkish side which surprised many with the new Covid19 variant Omicron causing global concern. He said it was tine to retire “inflation is transitory” and said it is time for a faster taper to be discussed.
The major stock indices all fell sharply with the small-cap Russell 2000 and S&P index leading the way. The Dow closed down at 34484 (-1.86%). The tech heavy Nasdaq closed down at 15538 (-1.55%). The small cap Russell 2000 closed down at 2198.90 or -1.92% at 2198.90 and the S&P 500 closed down at 4567 (-1.9%).
The move down came on higher than average volume (NYSE 2082 mln vs avg. of 849 mln and NASDAQ 6593 mln vs avg. of 5114 mln)
Decliners also outpaced advancers (NYSE 708/2711 and NASDAQ 1397/3332). New lows outpaced new highs (NYSE 26/280, NASDAQ 46/628).
Volatility or the fear index was up sharply. The VXX soared+15.46% on the volatility.
Breakdown:
- Dow industrial average -652.22 points or -1.86% at 34483.70
- S&P index -88.25 points or -1.90% at 4567.01
- NASDAQ index -245.13 points or -1.55% at 15537.70
- Russell 2000-43.06 points or -1.92% at 2198.90
For the month:
- Dow industrial average -3.73%
- S&P index -0.83%
- NASDAQ index +0.25%
- Russell 2000, -4.28%
Source; TC
From The TradersCommunity News Desk