US stocks fell on Tuesday as investors weighed down the hawkish comments by Federal Reserve Governor Lael Brainard that policy makers are willing to raise interest rates more aggressively to rein in inflation. Investors also braced for the possibility of new EU sanctions on Russia and continued to monitor the closely watched yield curve.
The S&P 500 was down almost 0.9%, and the Dow Jones Industrial Average was down 0.4%. The Nasdaq Composite is down 2% in its biggest drop in three weeks, erasing gains from a rally in the previous trading session driven by a 27% rally in Twitter (TWTR(which came after Tesla)TSLACEO Elon Musk revealed it It bought a 9.2% stake in the social media company. Twitter rose gradually again on Tuesday after the company said it would include Musk on its board of directors a day after the Tesla chief revealed his stake. However, the technology sector witnessed a widespread decline in daily trading.
Rohit Kulkarni of MKM Partners told Yahoo Finance Live that Musk “is talking with his money by saying Twitter is an undervalued platform.” “He sees there are things they can do to improve the service, and he’s definitely hinting at a more active role.”
Dan Ives, a Wedbush Securities and Tesla Bull analyst, also told Yahoo Finance that he expects Musk to have an active stake in the social media platform over the coming weeks or months, and that his recent stock grab was “only appetizers. “
Separately, electric car giant Tesla’s Musk contributed to the gains that drove the tech take off during Monday’s trading session. Shares of the electric car maker jumped nearly 6% after it reported vehicle delivery numbers this weekend that were higher than the same period last year.
Tensions from the economic recession eased on Monday after a closely watched portion of the Treasury yield curve inversion last week Investors are stunned by the possibility of an imminent economic downturn. The phenomenon has a history of recession prediction, with each of the last eight slowdowns dating back to 1969 preceded by a yield curve inversion. As of Monday morning, the yield on the standard 10-year bond remained lower than the yield on the two-year short-term bond.
However, concerns about an economic downturn have not been entirely off the table for strategists.
Nomura Chief US Economist Robert Dent Yahoo Finance Live said Sees the possibility of a ‘moderate recession’
He said, “We think the cumulative risk of a recession between now and the end of 2024 stands at about 35% to 40%. A lot of that just comes from what we think is going to be this very aggressive response from the Federal Reserve to actually control inflation and make sure the labor market actually calms down.” .
And the uncertainty over the crisis in Eastern Europe continues to be a headwind for investors. Jamie Dimon, CEO of JPMorgan, in his widespread message to shareholders He warned that the war in Ukraine is likely to significantly slow down the US economy and the global economy. Specifically in the United States, the bank estimates that the US economy will grow by about 2.5%, which is down from the initial forecast of 3% of the institution’s GDP, with further reductions to expectations about the economic outlook for Russia and Europe.
“We don’t know what its eventual outcome will be, but the hostilities in Ukraine and sanctions against Russia are already having a significant economic impact,” Dimon said, adding that “many sanctions” could be imposed on Russia and lead to greater unpredictability. .
The European Union addressed what appeared to be war crimes in Ukraine on Monday, noting that In a statement that officials“working on more sanctions against Russia” over attacks targeting civilians in the country, including some senior European officials German Defense Minister said they would support Russia’s natural gas ban A move previously excluded from sanctions, as Russia supplies about 40% of European gas energy.
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12:27 p.m. ET: Chip makers post their biggest drop in nearly a month as tech stocks tumble
Semiconductor stocks fell in daily trading, dragged down by a broad-based decline in technology stocks.
The Philadelphia Stock Exchange’s semiconductor index fell 4.1% to mark the largest intraday percentage drop in nearly a month.
Notable industry defaults have included Nvidia (NVDA), down 4.2% to $262.07 per share; Lam Research (LCRX), down 5.5% to $505.92 per share; and Marvel Technology (MRVL) was down 6.3% to $68.30 as of 12:27 PM ET.
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12:19PM ET: Stocks fall after two days of gains
Here are the major moves in the markets as of 12:18 PM ET:
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Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -32.28 (-0.70%) to 4550.36
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dow (^ DJI): -86.23 (-0.25%) to 34835.65
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Nasdaq (^ ninth): -261.54 (-1.80%) to 14271.01
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raw (CL = F.):- $0.43 (-0.42%) to $102.85 per barrel
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gold (GC = F.): – $10.30 (-0.53%) to $1,923.70 per ounce
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Treasury for 10 years (^ degeneration): +14.6 basis points to produce 2.5580%
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10:43AM ET: US service sector activity picks up in March but high costs persist
Activity in the US service industry regained speed Last month thanks to a boost from further rollback of COVID restrictions, companies continued to face higher costs as supply chain restrictions weighed on prices.
The Institute for Supply Management (ISM) reported that its index of non-manufacturing activity rebounded to a reading of 58.3 last month from a one-year low of 56.5 in February.
This increase capped three consecutive months of declines in the index and emphasized a shift in spending to services from goods.
Economists polled by Bloomberg had expected the non-manufacturing index to rise to 58.5. Readings above 50 indicate expansion in the service sector, which accounts for more than two-thirds of US economic activity.
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10:33 a.m. ET: Fed Governor Brainard says central bank is ready for ‘stronger action’ on inflation
Federal Reserve Governor Lyle Brainard The central bank said it could raise interest rates more aggressively To reduce the high rate of inflation that Americans feel.
Brainard added that policy makers are in agreement with the divergent effects of higher prices, particularly on lower-income families.
“At the moment, inflation is very high and is subject to upside risks,” Brainard said at a conference on Tuesday. “The committee is prepared to take stronger action if inflation indicators and inflation expectations indicate that such action is justified.”
Inflation data released last week showed prices in the US rose 6.4% year-on-year in February, the fastest pace since 1982.
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10:23AM ET: Twitter names Elon Musk to board of directors after Tesla CEO discloses 9.2% stake
Twitter Inc. (TWTR) Announced The company will appoint Elon Musk as CEO of Tesla to its board of directors, a day after he disclosed a large stake in the social media company.
The move could temporarily prevent Musk from proposing a takeover bid, which analysts and investors had expected after the Tesla CEO revealed his nearly $3 billion purchase of Twitter shares.
According to one filing, Musk cannot own more than 14.9% of Twitter’s common stock either as an individual shareholder or as a group member as long as he is the Twitter manager.
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9:30 a.m. ET: Stocks fall as investors are interested in more potential sanctions against Russia
Here are the main moves in the markets during Tuesday’s opening:
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Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -12.78 (-0.28%) to 4569.86
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dow (^ DJI): -90.43 (-0.26%) to 34831.45
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Nasdaq (^ ninth): +271.05 (+1.90%) to 14532.55
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raw (CL = F.): +0.83 dollars (+0.80%) to 104.11 dollars per barrel
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gold (GC = F.): + $5.50 (+0.28%) to $1,939.50 per ounce
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Treasury for 10 years (^ degeneration): +4.6 basis points to produce 2.4580%
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7:50 a.m. ET: US halts Russian bond payments aiming to increase pressure on Moscow
United State On Monday, the Russian government suspended It paid more than $600 million to its sovereign debt holders from reserves held in US banks in an attempt to pressure Moscow.
The foreign exchange reserves held by the Russian Central Bank in US financial institutions were frozen on February 24 as part of the sanctions imposed on Moscow over its invasion of Ukraine.
However, the US Treasury was allowing the Russian government to use the funds to make coupon payments on sovereign dollar-denominated debt on a case-by-case basis.
On Monday, the US government moved to cut off Moscow’s access to the frozen funds as the $552.4 million in bonds maturing was due.
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7:10 a.m. ET: Stock futures slip, oil rallies after Monday’s tech rally
Here are the main moves in futures trading ahead of Tuesday’s open:
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S&P 500 futures contracts (ES = F.): -10.50 points (-0.23%) to 4,567.25
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Dow futures contractsYM = F.): -83.00 points (-0.24%) to 34746.00
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Nasdaq futures contractsNQ = F.): 37.75 points (-0.25%) to 15126.50 points
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raw (CL = F.): +1.28 dollars (+1.24%) to 104.56 dollars per barrel
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gold (GC = F.):- $1.70 (-0.09%) to $1,932.30 per ounce
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Treasury for 10 years (^ degeneration): 0.00 basis points to produce 2.4120%
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6:12PM ET Monday: Futures open little changed after stocks close higher
Here is where the markets were trading before the evening session on Monday:
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S&P 500 futures contracts (ES = F.): -2.25 points (-0.05%) to 4575.75 points
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Dow futures contractsYM = F.): -14.00 points (-0.04%) to 34,815.00
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Nasdaq futures contractsNQ = F.): 9.25 points (-0.06%) to 15155.00
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raw (CL = F.): +0.43 dollars (+0.42%) to 103.71 dollars per barrel
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gold (GC = F.): + $3.30 (+0.01%) to $1,937.30 per ounce
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Treasury for 10 years (^ degeneration): +3.5 basis points to produce 2.4120%
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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