Tuesday’s stock market decline was caused by investors’ ongoing concern that the Federal Reserve Dow Drops may lower interest rates later than anticipated.
Following a decline of over 500 points at its lowest point, the Dow Jones Industrial Average fell 395 points, or 1%, on Tuesday. This indicates that within the first two days of the second quarter, the blue-chip index had dropped by about 800 points. Tuesday saw a 0.7% decline in the S&P 500 and a roughly 1% loss on the Nasdaq Composite.
According to Art Hogan, chief market strategist at B. Riley Financial, “it feels like after a strong run, people are looking for an excuse to take money off the top and allow this market to have a breather.”
The S&P 500 had its best first quarter since 2019 just before the market started to tumble. In the first three months of the year, the S&P 500 index increased by 10.2%, while the Dow and Nasdaq had 5.6% and 9.1%, respectively.
According to new data released on Friday, the Fed’s favored inflation measure, the Personal Consumption Expenditures price index increased by 2.5% for the 12 months ending in February. This growth rate was quicker than the rate of increase in prices in January.
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