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Wall Street ended lower on Tuesday following an eventful week that saw stocks rallying to their highest levels in months, as investors awaited Fed Chair Jerome Powell’s Congressional testimony that could impact the market’s movement. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.7% or 245.25 points to close at 34,053.87 points.
The S&P 500 fell 0.5% or 20.88 points to end at 4,388.71 points. Real estate, utilities and energy stocks were the worst performers.
The Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) each declined 2%. The Energy Select Sector SPDR (XLE) slid 3.1%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq declined 0.2% or 22.28 points to finish at 12,667.29 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.18% to 13.88. Declined outnumbered advancers on the NYSE by a 2.23-to-1 ratio. On Nasdaq, a 1.63-to-1 ratio favored declining issues. A total of 11.15 billion shares were traded on Tuesday, lower than the last 20-session average of 11.36 billion.
Investors Await Fed Chair’s Testimony
Markets were closed on Monday for Juneteenth. On Tuesday, stocks ended lower, trimming last week’s gains following the Fed’s decision to pause its interest rate hikes and impressive economic data that hinted at easing inflation.
Last week saw investors’ confidence getting the much-require boost. However, they now appear to be taking a closer close at the present situation and are trying to gauge the economy’s health and the Fed’s future course of action as the central bank hinted that at least two more rate hikes might be required by the end of the year, which could be a rise of around another 50 basis points.
Investors are now awaiting Fed Chair Jerome Powell’s Congressional testimony scheduled for Wednesday, which might help shape how the market reacts to the central bank’s policy in the coming days.
Economic data released on Tuesday once again came in impressive, with May U.S. housing starts surpassing estimates. May Housing starts surged 21.7% to 1.63 million starts, higher than the consensus estimate of 1.39 million starts. This follows a 2.9% decline in April.
Also, building permits jumped 5.2% in May to hit its highest level since October 2022 at 1.491 million units.
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Stock Market News for Jun 21, 2023
Wall Street ended lower on Tuesday following an eventful week that saw stocks rallying to their highest levels in months, as investors awaited Fed Chair Jerome Powell’s Congressional testimony that could impact the market’s movement. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.7% or 245.25 points to close at 34,053.87 points.
The S&P 500 fell 0.5% or 20.88 points to end at 4,388.71 points. Real estate, utilities and energy stocks were the worst performers.
The Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) each declined 2%. The Energy Select Sector SPDR (XLE) slid 3.1%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq declined 0.2% or 22.28 points to finish at 12,667.29 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.18% to 13.88. Declined outnumbered advancers on the NYSE by a 2.23-to-1 ratio. On Nasdaq, a 1.63-to-1 ratio favored declining issues. A total of 11.15 billion shares were traded on Tuesday, lower than the last 20-session average of 11.36 billion.
Investors Await Fed Chair’s Testimony
Markets were closed on Monday for Juneteenth. On Tuesday, stocks ended lower, trimming last week’s gains following the Fed’s decision to pause its interest rate hikes and impressive economic data that hinted at easing inflation.
Last week saw investors’ confidence getting the much-require boost. However, they now appear to be taking a closer close at the present situation and are trying to gauge the economy’s health and the Fed’s future course of action as the central bank hinted that at least two more rate hikes might be required by the end of the year, which could be a rise of around another 50 basis points.
Investors are now awaiting Fed Chair Jerome Powell’s Congressional testimony scheduled for Wednesday, which might help shape how the market reacts to the central bank’s policy in the coming days.
Energy sector stocks were the worst performers in the S&P 500 on Tuesday. The Dow was dragged down by Intel Corporation ((INTC - Free Report) ) and NIKE, Inc. ((NKE - Free Report) ). Shares of Intel declined 3.8%, while Nike ended 3.6% lower. Intel has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Economic data released on Tuesday once again came in impressive, with May U.S. housing starts surpassing estimates. May Housing starts surged 21.7% to 1.63 million starts, higher than the consensus estimate of 1.39 million starts. This follows a 2.9% decline in April.
Also, building permits jumped 5.2% in May to hit its highest level since October 2022 at 1.491 million units.