DJIA: 34,297.73, down 66.77
S&P 500: 4,356.45, down 53.68
Nasdaq: 13,539.30, down 315.83
Stocks fall in another volatile day
U.S. stocks finished lower on Tuesday in another volatile session as investors grappled with uncertainty related to monetary policy tightening, the economic growth outlook, and escalating geopolitical tensions. The Dow fell 66 points, largely recovering from a more than 800-point slump for the second straight session. The S&P 500 shed 1.2% to a three-month low, but pared an earlier loss that had once again briefly pushed the index into correction territory (defined as a 10% decline from a recent peak). The broad benchmark is positioned for its worst monthly performance since March 2020 (-8.6% month-to-date). The Nasdaq Composite slumped 2.3%, trimming an early session drop of over 3%, but still closing more than 15.6% below its November 19 record. On Monday, the tech-heavy index staged its sharpest reversal since 2008.
Nine of 11 S&P 500 sectors closed in negative territory, with growth-related groups leading decliners. Energy shares bucked the downtrend as worries over supply disruptions propelled West Texas Intermediate crude 2.4% higher to $85.31/barrel. Financials also outperformed, with American Express Co. jumping 8.9% as record card spending fueled strong results. In other earnings, International Business Machines Corp. climbed 5.7% after the Tech stalwart notched its strongest revenue growth in a decade. Meanwhile, General Electric Co. slipped 6% as ongoing supply chain issues pressured its quarterly figures. Elsewhere, Johnson & Johnson added 2.9% following stronger-than-expected full-year guidance.
Treasuries ended little changed, with the yield on the 10-year note up one basis point (0.01%) to 1.78%. On the data front, the Conference Board’s gauge of consumer confidence eased in January.
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