Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Eases From Record High as Tech Fights to Hold Gains Ahead of Fed

Stock MarketsMar 16, 2021 03:48PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 eased from record highs Tuesday paced by a decline value stocks and a retreat in tech as the Federal Reserve's kicked off its two-day meeting.

The Dow Jones Industrial Average fell 0.31%, or 102 points, the S&P 500 was flat after hitting a record high of 3,981.30 and the Nasdaq Composite was up 0.26%, though had risen more than 1% intraday.

Big tech cut some gains after advancing sharply early intraday even as U.S. rates show little risk of resuming their rapid acceleration that had put long-duration growth stocks in the crosshairs earlier this month.

Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Google-parent Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) were off the day's highs, but still in the green as the U.S. United States 10-Year yield flirted with 1.6%.

With a day to go until the Federal Reserve reveals its monetary policy and chairman Jerome Powell makes an appearance, some have called for caution.

The central bank is expected to keep rates unchanged and its $120 billion pace of monthly bond purchases on hold. An update from the Powell, however, has the potential to trigger a move in bond yields that would likely move stocks.

"[W]e do expect the rate move to continue in the very near term. The Fed as ever remains a key wildcard," Jefferies (NYSE:JEF) said. "So we do think folks need to watch the price action quite closely here going into [this week's] Fed meeting."

The note of caution has been echoed by the latest Bank of America (NYSE:BAC) survey showing that fund managers are more worried about the Fed tightening policy too early, a so-called taper tantrum, and a spike in inflation than the Covid-19 pandemic.

On the economic front, meanwhile, the consumer was in the spotlight as retail sales fell by more than expected. Economists, however, shrugged off the weaker headline number, blaming it on weather-related events as a cold snap wrecked havoc across the U.S.

"The February weakness was weather-related and will likely prove temporary. Based on card spending data, the dip was concentrated in the third week of the month which coincided with the winter storms that caused extended power outages in Texas," Jefferies said in a note.

In industrials, airline stocks including American Airlines, United Airlines Holdings (NASDAQ:UAL) and Delta Air Lines Inc (NYSE:DAL) took a breather following a surge a day earlier. Optimism on airlines, however, has picked up in recent weeks on signs of a recovery in air travel demand.  

Energy was down more than 2% as oil prices tracked lower on concerns of an another weekly build in U.S. crude stockpiles, with data from the American Petroleum Institute expected later on Tuesday.   

In other news, trading platform eToro, a Robinhood rival, is going public in deal worth more than $10 billion via a special purpose acquisition with Fintech Acquisition Corp V (NASDAQ:FTCV).

S&P 500 Eases From Record High as Tech Fights to Hold Gains Ahead of Fed
 

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 (11)
Steffen vdm
Steffen vdm Mar 16, 2021 4:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bargain hunting next couple of days
nn st
nn st Mar 16, 2021 4:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when stock market crash crypto currency will be rising,, ada,btc,ltc, save heaven (gold) left it ! move into crypto
Jared Magnums
Jared Magnums Mar 16, 2021 3:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Whats a bet that 100% of the people complaining about “The Fed” in the comments, arent profitable...
Matt Kay
Matt Kay Mar 16, 2021 3:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I bet your only strategy is BUY
Mitchel Pioneer
Mitchel Pioneer Mar 16, 2021 3:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And so begins the predictable miracle "in late trade."  Just a matter of time before we see the most prolific headline in internet news history, "US stocks recover in late trade". No end to the fraud and criminal manipulation in the biggest investment joke in the world.  What's next, green across the board by the close?  Assume the position America.
Phil Ht
Phil Ht Mar 16, 2021 3:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell is poison to the markets
Jan Buyle
Jan Buyle Mar 16, 2021 3:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
His job is not to please the market...
Marco cuevas
Marco cuevas Mar 16, 2021 3:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's like March 2020 all over again yayyyy  screwy market.
Wayne Gillispie
Wayne Gillispie Mar 16, 2021 3:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Business was slow because corporate America/power companies have been too busy handing out bonuses, flying their private jets/helicopters on vacations, figuring our ways to get out of paying taxes to update and repair infrastructure across the USA. Tax paying citizens were too busy fixing water leaks, buying kerosene, buying generators and gasoline for generators, preventing their family from freezing or starving. Oh yeah, 10 million still out of work and companies still paying $7.25/hr in most states.
Jim Jones
Jim Jones Mar 16, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Remember when hard work and determination were what drove the market and not welfare and loose monetary policy?
Fernando Lazarini
Fernando Lazarini Mar 16, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I can hardly remenber, sadly.
Cal Lowe
Cal Lowe Mar 16, 2021 2:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Go on... continue to be in denial and blame on the bad weather
Matt Kay
Matt Kay Mar 16, 2021 2:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Love boomers blaming the weather for poor sales
Faton Lahu
Faton Lahu Mar 16, 2021 2:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
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