Wall street has faltered in the afternoon trading to close lower, under pressure from interest rate sensitive technology stocks as uncertainty over what a Federal Reserve (Fed) increasingly aggressive and the growing geopolitical tensions have contributed to the market unraveling.
On a day similar to Monday, U.S. stocks swung between sharp losses and modest gains. Shares ended well with session lows as the S&P 500 flanked again with confirmation of a correction.
The three major stock indices Americans closed with losses.
If the benchmark index had closed 10% or more below its all-time high, which hit on January 3, it would have confirmed that it had entered a correction. The S&P 500 ended the day 9.2% below that level.
“We’re floating along this arbitrary 10% line, and investors are asking, ‘Is it time to protect my capital by selling or is it time to buy the downturn?'” Says Tom Martin, senior portfolio manager at GLOBAL.
The S&P 500 lost 53.68 points, or 1.22%, to finish at 4,356.45 units, while the Nasdaq Compound it lost 315.83 points, or 2.28%, to 13,539.3 units. The Promedio Industrial Dow Jones it fell by 66.77 points, or 0.19%, to 34,297.73 points.
The members of the Federal Open Market Committee The Fed (FOMC) met on Tuesday at the start of two days of monetary policy deliberations.
On Wednesday, agents in the market will examine the statement at the end of the meeting, along with the words of the Fed president Jerome Powell, seeking clarity on the central bank’s timetable for raising interest rates and combating inflation.
Geopolitical tensions have contributed to investor insecurity, with NATO putting forces on standby and US troops on high alert in response to a Russian troop buildup on the Ukrainian border.