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Stock market today: Dow suffers monthly loss as Fed fears wound stocks in February

Published 02/28/2023, 03:43 PM
Updated 02/28/2023, 04:16 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow fell Tuesday, wrapping up February with a monthly loss as surging rates battered stocks after a string of data pointing to underlying strength in the economy forced investors to price in higher for longer Federal Reserve interest rates.

The Dow Jones Industrial Average fell 0.65%, or 214 points, taking losses for February to about 4%. The S&P 500 fell 0.29%, and the Nasdaq Composite was down 0.10%.

Tech, which is down about 5% from its peak earlier this month, pared earlier gains despite a jump in Meta.

Meta Platforms (NASDAQ:META) rallied more than 3%, building on gains from a day earlier when the social media giant said it created a new product team to work on building generative AI tools to integrate into its products.

Zoom Video Communications (NASDAQ:ZM) closed up about 1% after the video conferencing platform reported quarterly results that beat Wall Street expectations on both the top and bottom lines, driven by growth in its enterprise segment.

Zoom’s guidance on revenue, however, fell short of estimates, prompting some on Wall Street to remain on the sidelines.

“While we view the guide as increasingly de-risked, we would prefer to see revenue re-acceleration via Online stabilization and an improving Enterprise mix (via Phone/Contact Center) before becoming more constructive,” Goldman Sachs said in a note.

Elsewhere on the earnings front, meanwhile, Target Corporation (NYSE:TGT) rose 1% following better-than-expected fourth-quarter results, though its annual guidance missed estimates keeping a lid on gains.

“[W]e're planning our business cautiously in the near term to ensure we remain agile and responsive to the current operating environment," said Target chief executive Brian Cornell. 

Advance Auto Parts Inc (NYSE:AAP) was also in the ascendency, rising 3% after its Q4 results topped analysts’ forecasts, though the automotive aftermarket parts company struck a cautious tone on the year ahead.

“As we begin the year, we remain cautious surrounding the macroeconomic backdrop, including the potential for ongoing pressure on low to middle income consumers,” said Advance Auto Parts CEO Tom Greco.

In other news, Arconic Corp (NYSE:ARNC) surged more than 19% on reports the aluminum products maker has attracted buying interest from private-equity company Apollo Global Management.

On the economic front, meanwhile, consumer confidence in February fell to its lowest reading since November, pointing to signs strong consumer spending, which has underpinned strong growth so far this year, may be starting to slow.

“The data today continue to show that the Fed's job is very tough. Consumers are only just barely starting to reign in their spending plans, but they still see good strength in the labor market,” Jefferies said in a note.

The broader market’s slip in February was pressured by a surge in rates as strong economic data forced investors to play catch-up and price in further Fed rate hikes that have pushed the 10-year Treasury yield close to 4%.

Investors will likely have to contend with choppy market activity in the weeks ahead amid inflation data, Fed policy, and geopolitical uncertainty that will continue to be the drivers “over the short run,” Janney Montgomery Scott said.

“The trading range for the S&P 500 still looks to be within 3850 - 3950 support and 4100 - 4200 resistance over the next few weeks in our opinion,” it added.

Latest comments

Grocery price inflation in the UK just hit all time high
shame on NVDA for their pump and dump scam
it's all fed manipulation. total fraudism.
OK folks, it's no longer FED fears, it's FED realities.
The Fed’s job is very tough not because labor market is strong or consumers spend money, The job is tough because reckless government overspending continues ,fueling inflation. Simple economic truth, which media tries to hide and distort.
I'm only fighting ignorance, hate and depravity, something you possess in equally large amounts..
warm camp in the past, has demonstrated through his intolerance he was having some sexual issues. perhaps a therapy session would help him come to terms and he will come out of the closet.....
max looks like we have a number of posters up here that are very uneasy about their sexual feelings....
He will place the sheep on his right hand and the goats on his left. Mathew 25:33
the reality is if the Republicans take over the government they'll bankrupt the country with their tax cuts and corporate welfare....
Liberal logic at its finest
It's been proven over and over again tax cuts actually stimulate the economy and bring in more taxes. The government has a spending problem.
This site is pathetic. They're all about censorship. They've learned it well from Big Tech. You're all losers and cowards. It's the only way the Left can win an argument.. by not having it.
what you deliver vetter is right wing misinformation and propaganda.....with an occasional tip of the hat to hate speech.
Ac.. the king of misinformation. You can't handle the truth
Ac.. why don't you prove your point and show me one thing I've said that's misinformation or hate.
Ready to face reality?
the same refrain...and paranoid remarks from Abolish the Fed .....you want more instability and panic then abolish the fed.
1929 Style crash is coming. Prepare for a 20 year economic depression. An economy reliant on debt, asset price inflation and consumption is not sustainable
Mitch is at it again, with his daily refrain...
Shoring up the S&P and NASDAQ, what a joke.  Laughable that this "market" was green at all today, but the criminal support of the S&P and NASDAQ is as flagrant as it gets.  Wall Street continues to financially defile America in broad daylight.
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