After opening lower, major US indices erased losses following Powell’s testimony before a Senate committee, but then faded closer.
Powell said irrigated It is “strongly committed” to easing inflation running at 40-year highs, while policymakers are not trying to cause a recession in the process.
Investors are trying to assess how far the stock could fall as they weigh the risks to the economy with the Fed hiking rates to beat inflation. Earlier this month the S&P 500 fell more than 20% from its January all-time high, confirming the general definition of a bear market, with the benchmark index last week reporting its biggest weekly percentage drop since March 2020.
“The market continues to be volatile,” said King Lipp, chief strategist at Baker Avenue Asset Management in San Francisco. “Certainly we’re not out of the woods yet… the concerns are still there.”
The Dow Jones Industrial Average fell 47.12 points, or 0.15%, to 30,483.13, the S&P 500 fell 4.9 points, or 0.13%, to 3,759.89 and Nasdaq The composite fell 16.22 points, or 0.15%, to 11,053.08.
The energy sector, which has been a strong performer this year, fell 4.2% on the back of plunging oil prices. Falls in Exxon Mobil, Chevron and ConocoPhillips were the biggest individual drags on the S&P 500.
The heavyweight technology sector also declined 0.4%.
defensive zone real estate, health care And utilities were the biggest gainers among the S&P 500 sectors. Real estate grew by 1.6%, healthcare by 1.4% and utilities by 1%.
In company news, shares of Moderna Inc. rose 4.7% after the company said an updated version of its COVID-19 vaccine produced a stronger immune response against the rapid spread omicron subtype
Shares of Dow Inc fell 4.7% after Credit Suisse downgraded the chemicals maker’s stock to “underperform.”
reducing issues leading to a 1.17-to-1 ratio on the NYSE; On the Nasdaq, a 1.08-to-1 ratio favored the downside.
The S&P 500 posted a new 52-week high and 39 new lows; The Nasdaq Composite posted nine new highs and 207 new lows.
About 12.2 billion shares changed hands on US exchanges, compared to a daily average of 12.5 billion over the past 20 sessions.