Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq, S&P 500 end down after hitting record highs

Stock MarketsNov 22, 2021 07:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. December 28, 2016. REUTERS/Andrew Kelly/File Photo 2/2

By Ambar Warrick and Noel Randewich

(Reuters) - The S&P 500 ended lower and the Nasdaq tumbled deep into negative territory on Monday after both earlier hit record highs following the announcement of a second term for Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average ended slightly higher.

Climbing Treasury yields kept tech stocks broadly lower, with holdouts including Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), which many investors view as relatively safe, giving up gains late in the session.

Apple ended up 0.3%, its highest closing level ever, after rising over 3% earlier in the day. JPMorgan (NYSE:JPM) flagged possible improvements to the supply of the iPhone 13 in coming months.

Microsoft ended down almost 1% after earlier rising almost 2%.

"The market is nervous. We know we have Powell, but that doesn't help with the inflation issue," said Dennis Dick, a trader at Bright Trading LLC. "Under the hood, growth tech got hit all day, and then all of tech got hit at the end."

Powell's nomination was welcomed by many investors hoping for no big changes in the Fed as it guides the economy through a recovery from the pandemic. The central bank is set to herald a return to pre-pandemic policy by end-2022.

Fed Governor Lael Brainard, who was the other top candidate for the job, will be vice chair, the White House said.

"Markets like predictability. ... While Brainard may have been a fine choice, the markets would not know what to expect from her even though the general consensus was that it meant lower rates for longer," said Randy Frederick, managing director of trading and derivatives at Charles Schwab (NYSE:SCHW) in Austin, Texas.

The S&P 500 banks index rallied 2%, tracking a surge in Treasury yields as investors priced in policy tightening by the first half of 2022. Wells Fargo (NYSE:WFC) & Co rose over 3% and was among the strongest major Wall Street banks. [US/]

Futures contracts tied to the Fed's policy rate indicated that money markets are now expecting the U.S. central bank to raise interest rates by 25 basis points by next June versus a previous estimate of July.

The Dow Jones Industrial Average rose 0.05% to end at 35,619.25 points, while the S&P 500 lost 0.32% to 4,682.94.

The Nasdaq Composite dropped 1.26% to 15,854.76.

The S&P 500 value index climbed 0.6%, strongly outperforming the S&P 500 growth index's 1% dip.

In extended trade, Zoom Video Communications (NASDAQ:ZM) jumped 6% after the video-conferencing company posted quarterly revenue that beat expectations.

Investors were awaiting a slew of economic data this week, including IHS business activity readings, personal consumption expenditure, and minutes of the Fed's latest meeting.

In Monday's session, Amazon (NASDAQ:AMZN) fell 2.8% and Alphabet (NASDAQ:GOOGL) declined 1.8%, both weighing heavily on the Nasdaq.

Tesla (NASDAQ:TSLA) Inc gained 1.7% after CEO Elon Musk tweeted that the Model S Plaid will "probably" be coming to China around March. The stock has almost recovered from a steep selloff earlier this month that started after Musk polled Twitter (NYSE:TWTR) users about whether he should sell some of his shares in the electric car maker.

Activision Blizzard (NASDAQ:ATVI) slipped 0.3% after a media report that the video game publisher's chief executive, Bobby Kotick, would consider leaving if he could not quickly address concerns about company culture.

The S&P 500 has now gained about 25% in 2021, while the Nasdaq is up 23%.

Declining issues outnumbered advancing ones on the NYSE by a 1.28-to-1 ratio; on Nasdaq, a 1.76-to-1 ratio favored decliners.

The S&P 500 posted 52 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 138 new highs and 507 new lows.

Volume on U.S. exchanges was 11.6 billion shares, compared with the 11.1 billion average for the full session over the last 20 trading days.

Nasdaq, S&P 500 end down after hitting record highs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Fong SH
Fong SH Nov 22, 2021 8:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump's era was doldrums for financial markets, well, Biden is the needle that pricked  the burst. Guess both are talks only, nothing had changed as Obama left with a clean & good sheet of results. Guess we all have to wait for another 4 years, good luck. Take good care, wear a mask when outdoors. Cheers.
stefan mihalea
stefan mihalea Nov 22, 2021 1:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what record? same values as start of nov!!!
Marco cuevas
Marco cuevas Nov 22, 2021 1:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And that's just the way market manipulators want it.
Mitchel Pioneer
Mitchel Pioneer Nov 22, 2021 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another day of fraud and criminal manipulation in the biggest investment JOKE in history, were nothing is ever "priced in" unless is bad.  Assume the proper position America.
Farting Joe
Farting Joe Nov 22, 2021 1:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell OMG!!
Stan Smith
Stan Smith Nov 22, 2021 12:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nothings changed!!! Hyperinflation is still on the horizon. This is what they do best... use a meaningless headline like this as a cover to pump stocks and smash PMs.
Patty Miller
Patty Miller Nov 22, 2021 11:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So glad Powell has been nominated. Finally Biden has done something right!
Wankel YU
Wankel YU Nov 22, 2021 9:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
199 big Mac meal is committed
Whaling Trawler
Whaling Trawler Nov 22, 2021 9:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There's a lot less people wearing a mask while shopping and it's about time people snap out of it...
Kaveh Sun
Kaveh Sun Nov 22, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It raises because Biden keeps the Fed chairman
stefan mihalea
stefan mihalea Nov 22, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this should something ugly
Raj Shekar
Raj Shekar Nov 22, 2021 9:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
as if it falls during the rise in cases
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email