Stocks Swoon Amid Rate Fear - InvestingChannel

Stocks Swoon Amid Rate Fear

Stocks fell on Tuesday as Federal Reserve Governor Lael Brainard indicated the central bank could take a more aggressive approach to its tightening policy.

The Dow Jones Industrials withered 280.70 to 34,641.18,

The S&P 500 slumped 57.52 points, or 1.3%, to 4,525.12.

The NASDAQ Composite cratered 328.39 points, or 2.3%, to 14,204.17.

Tech stocks were among the biggest losers of the day led by chip stocks like Nvidia, Some believe this group could be hurt the most by the Fed’s hiking campaign as investors take less risk and buy stocks with steady profits, rather than growth shares promising big earnings down the road.

Meanwhile, sectors like utilities and healthcare moved higher with drugmakers Johnson & Johnson and Pfizer rose more than 1.5% and staples like Procter & Gamble and Walmart were also higher.

Meanwhile, cruise stocks like Carnival, Norwegian Cruise Line, and Royal Caribbean added 1%.

Recessionary fears continued to spook investors on Tuesday and Deutsche Bank became the first major Wall Street bank to forecast a U.S. recession is ahead, citing the Fed getting more aggressive to fight inflation.

Also, investors continue to keep an eye on Europe, as the war between Ukraine and Russia continues. Ukraine President Volodymyr Zelenskyy pledged to pursue allegations of war crimes against Russian forces, noting that more than 300 people were killed and tortured in a suburb near the capital of Kyiv

Treasury prices faltered as yields spiked to 2.55%, from Monday’s 2.41%. Treasury prices and yields move in opposite directions.

Oil prices slid $2.80 to $100.48 U.S. a barrel.

Gold prices moved backward $10.40 to $1,923.10 U.S. an ounce.

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