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S&P 500 Slips as Lockdowns in Europe Fuel Slowdown Fears

Stock MarketsMar 23, 2021 03:20PM ET
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© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 fell Tuesday, on the anniversary of its post-pandemic bounce, as supportive remarks from Federal Reserve chair Jerome Powell and U.S. Treasury Secretary Janet Yellen were overshadowed by global growth worries amid fresh lockdowns in Europe.

The S&P 500 was down 0.66%, and has rebounded about 80% higher since March 23. The Dow Jones Industrial Average fell 0.82%, or 268 points, the Nasdaq Composite was down 0.96%.

Powell shrugged off inflationary pressure and continued to back the Fed's accommodate monetary policy stance, saying the rise in price pressures this year will likely be a "one-off."

The U.S. 10-year yield remained at one-week lows near 1.65%, though it had dipped to the 1.30%-to-1.40% level for support.

 
Powell's doubling down on lower for longer monetary policy comes just a day after more hawkish members of the Federal Open Market Committee, the fed's rate setting arm, signaled that the first rate could hike could come sooner than 2024.

Dallas Federal Reserve President Robert Kaplan, a non-voting FOMC member, told CNBC Tuesday that he was one of four Fed officials who backed first benchmark rate hike next year at the Fed’s policy meeting last week.

The move lower in rates kept the bulk of megacap tech stocks above the flatline.

Apple (NASDAQ:AAPL) was flat, but Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), and Google-parent Alphabet (NASDAQ:GOOGL) were in the green.

The broader market was held back, however, by a plunge in oil prices as bullish bets on energy were reined in following fresh lockdowns in Europe that threaten global growth and energy demand.

Nov (NYSE:NOV), Halliburton (NYSE:HAL) and Marathon Oil (NYSE:MRO) were among the biggest decliners with the latter down 5%.

The lockdown in Europe hurt the reopening trade – bullish bets on stocks tied to the progress of the economic reopening – with airlines and cruise lines sharply lower.

United Airlines Holdings (NASDAQ:UAL), American Airlines Group (NASDAQ:AAL), Carnival (NYSE:CCL) and Norwegian Cruise  (NYSE:NCLH) were sharply lower.

On the economic front, housing market activity continued to ease as new home sales fell by a more-than-expected 18.2% to 775,000 units in February.

"[R]ising mortgage rates and rising materials costs could push more first-time buyers out of the market," Yelena Maleyev, an economist at Grant Thornton said.

In other news, AstraZeneca (NASDAQ:AZN) fell after the U.S. National Institute of Allergy and Infectious Diseases said the company may have included "outdated information" in its Covid-19 vaccine trial. AstraZeneca said it would published more data on its U.S. clinical trial within 48 hours.

S&P 500 Slips as Lockdowns in Europe Fuel Slowdown Fears
 

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Comments (10)
michael engel
michael engel Mar 23, 2021 4:08PM ET
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Israel is going to miss Bibi high tech, high RE, high respect, flying over every Arab state, just like US.
Zach Lohman
Zach Lohman Mar 23, 2021 3:39PM ET
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So something didn’t work before and now they’re doing it again. Einstein had something to say about that, lol.
President Xi Jinping
President Xi Jinping Mar 23, 2021 3:31PM ET
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Hope you people are putting in stop limits. Theyll keep raiding your profit as long as you let them.
Tony Coll
Tony Coll Mar 23, 2021 3:21PM ET
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They call this completely red market a slip, and just after a giant stimulus?? I call that a destroyed economy.
Michael michael
Michael michael Mar 23, 2021 2:52PM ET
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Who are these ridiculous journalists
Moody Dude
MoodyKitty Mar 23, 2021 2:51PM ET
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How do you beat your own worst nonsense headlines everyday? What you publish here daily has zero relevance to what's happening at the global markets lol
Moody Dude
MoodyKitty Mar 23, 2021 2:51PM ET
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Random https://investing.com moderator disliked this comment haha
AMIT SHARMA
AMIT SHARMA Mar 23, 2021 2:46PM ET
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If stocks wont go down, then small investors like us dont get a single chance to buy
President Xi Jinping
President Xi Jinping Mar 23, 2021 2:46PM ET
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The damage to small investors is greater when it does
Sh KOD
Sh KOD Mar 23, 2021 2:46PM ET
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Stop panicking
ChompChomp Boom
ChompChomp Boom Mar 23, 2021 2:46PM ET
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Its mostly bedause Jpow and Janet Yellin need to stop talking. Market dumps whenever they go off on a tangent about the economy. If they didnt speak we would be at 400 SPY already
Ron Love
Ron Love Mar 23, 2021 2:44PM ET
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Nobody ships vaccines to Europe?
Teo Teo
Teo Teo Mar 23, 2021 2:44PM ET
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covid 19.am vaqvinam saqartveloshi 27 clis gogonas sicocxle sheicira😭
 
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