Stock market today: S&P 500 slumps as tech rally stalls ahead of Powell testimony
Investing.com — The S&P 500 fell Tuesday, as investors continued to holster bullish bets on big tech just a day ahead of Federal Reserve chairman Jerome Powell testimony before Congress that will likely echo recent remarks from Federal Reserve members cautioning on cutting rates too soon.
By 16:00 ET (21:00 GMT), the benchmark S&P 500 fell 1%, the tech-heavy Nasdaq Composite slumped 1.7%, and the blue-chip Dow Jones Industrial Average fell 1%, or 404 points.
Federal Reserve Chair Jerome Powell is set to offer a two-day testimony before Congress on Wednesday and Thursday that will likely echo the need for patience on rate cuts.
Several Fed officials warned against bets on early rate cuts by the central bank, citing concerns over sticky inflation and resilience in the U.S. economy. Atlanta Fed President Raphael Bostic said on Monday that persistent bets on early Fed rate cuts could trigger an increase in inflationary pressures.
Still, analysts expect that the Fed will have enough conviction by June to begin trimming rates.
Along with Powell’s testimony, the focus this week is also on key nonfarm payrolls data for February.
Tesla (NASDAQ:TSLA) fell 4% after the electric vehicle giant said shipments of its China-made cars fell by19% year-on-year to 60,365, the lowest level since December 2022, following disruptions caused by the Lunar New Year holidays.
The drop came as the firm engaged in a bitter price war with its Chinese peers to capture the world’s largest EV market.
Chip stocks, which have played a pivot role in the rally so far, recovered lost ground as Advanced Micro Devices (NASDAQ:AMD) pared losses despite Bloomberg News reporting that the U.S. government had placed a hurdle in front of the company's effort
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