Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Nasdaq falls 1% as higher rates pressure tech stocks

by
November 23, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

China risks miscalculation with pressure on Taiwan, U.S. says

Student makes $110mn trading meme stock favourite Bed Bath & Beyond

The Nasdaq Composite fell sharply for the second-straight day on Tuesday as higher interest rates appeared to put pressure on high-flying tech stocks.

The tech-heavy index was down 1.1% on Tuesday morning, while the S&P 500 shed roughly 0.4%. The Dow Jones Industrial Average was down about 20 points.

In earnings news, shares of video conferencing company Zoom Video Communications tumbled 12% a day after it beat earnings estimates but warned of a slowdown ahead as the Covid pandemic winds down and the demand for remote contact decreases. Shares of Best Buy also fell sharply after the company said comparable sales and gross profit margin might decline in the fourth quarter compared to the year ago period.

On the positive side, chipmaker Western Digital was one of the best performers in early trading following an upgrade from Mizuho. Energy stocks also moved higher even after President Joe Biden announced on Tuesday that he would tap the strategic petroleum reserve in an attempt to lower gas prices at a time when inflation is running at its highest level in three decades.

Tuesday’s moves come after the market slid into the close in the previous session after the S&P 500 had hit an intraday record earlier in the day.

Stocks initially reacted positively to the announcement that Federal Reserve Chair Jerome Powell was nominated for a second four-year term by Biden, driving expectations that the central bank will stay on its monetary path as the economy recovers from the pandemic and attempts to combat inflation. However, markets reversed course towards the end of the session and yields continued to rise.

At Monday‘s close, the Dow Jones Industrial Average was up just 17 points, after being up more than 300 points at one point in the session. The S&P 500 fell 0.32%, and the tech-heavy Nasdaq Composite dropped 1.26% despite hitting its own intraday record earlier in the session.

Even with Monday’s decline, stocks are still trading near record highs.

“Bullishness was enhanced by the announcement that current Chair Powell will be reappointed by President Biden,” said Jim Paulsen, chief investment strategist for Leuthold Group. “Fears were building in recent weeks that Lael Brainard may be chosen over Powell and she was perceived as a much bigger monetary Dove which had intensified inflation fears.”

While trading is likely to slow because it’s Thanksgiving week and the Fed chief decision is behind the market, investors will be watching some economic data coming out Tuesday, including the Philly Fed. Additional data out later in the week includes weekly unemployment claims, a GDP update, personal income, and consumer confidence reads.

“It is Thanksgiving week, so the next few days will likely be extremely low volume and probably won’t have many fireworks,” said Ryan Detrick, chief financial strategist at LPL Financial. “Still, Wednesday will bring the latest Fed minutes and the Fed’s favorite measure of inflation in the PCE, so we could have something to think about before we go off and eat a lot of turkey.”

Investors are also juggling concerns about coronavirus overseas. German Chancellor Angela Merkel warned that the country was seeing a spike in the virus.

“Although Covid case counts are up around the globe, there is not much evidence that it is shutting down the U.S. economy again as it has in the past,” added Paulsen. “For example, travel forecasts for the Thanksgiving holiday are the strongest since before the pandemic.”

U.S. markets will be closed for the Thanksgiving holiday on Thursday. The stock market closes early at 1 p.m. ET on Friday.

ShareTweetPin

Related Posts

China risks miscalculation with pressure on Taiwan, U.S. says

by
August 18, 2022
0

Flags of United States and China displayed on phone screens in this multiple exposure illustration photo taken in Krakow, Poland...

Student makes $110mn trading meme stock favourite Bed Bath & Beyond

by
August 18, 2022
0

Trial Try full digital access and see why over 1 million readers subscribe to the FT $1 for 4 weeks...

The retail trader is back led by the meme gang, and these are their favorite stocks

by
August 18, 2022
0

Retail traders are back in full force. Data compiled by Vanda Research show retail traders have purchased an average of...

Thursday: Unemployment Claims, Philly Fed Mfg, Existing Home Sales

by
August 18, 2022
0

by Calculated Risk on 8/17/2022 09:02:00 PM Thursday: o At 8:30 AM ET, The initial weekly unemployment claims report will...

Top tech investor reveals why he thinks PayPal is a buy

by
August 18, 2022
0

It has been a good month for PayPal . The financial services firm reported stronger-than-expected second-quarter results and a renowned...

Next Post

Final Look: Local Housing Markets in October

3 “Strong Buy” Stocks Under $10 That Are Poised for a Breakout Year

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com