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U.S. stocks ended lower for the third consecutive session on Thursday, as Federal Reserve Chairman Jerome Powell’s remarks that he was monitoring the rising bond yields and would keep inflation expectations in check failed to erases worries from the minds of investors. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1.1% or 345.95 points to finish at 30,924.14. The blue-chip index at one point was down more than 700 points to an intraday low of 30,547.53.
The S&P 500 declined 1.3% or 51.25 points to finish at 3,768.47 points. Tech and consumer discretionary sectors were the biggest losers. The Technology Select Sector SPDR (XLK) declined 2.2%, while the Consumer Discretionary Select Sector SPDR (XLY) slipped 2.1%. Ten of the 11 sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq tumbled 2.1% or 274.28 points to close at 12,723.47 points, touching a three-month low. Thursday’s decline also turned Nasdaq negative for this year with a loss of 1.3%. On a intraday basis, the index also at one point entered correction territory after it declined more than 10% from its recent 52-week high attained on Feb 12.
The fear-gauge CBOE Volatility Index (VIX) was up 7.12% to 28.57. A total of 18 billion shares were traded on Thursday, higher than the last 20-session average of 15 billion. Decliners outnumbered advancers on the NYSE by a 3.79-to-1 ratio. On Nasdaq, a 5.62-to-1 ratio favored declining issues.
Investors’ Worries on Rising Bond Yields Continue
The Wall Street has been suffering for more than a week owing to the huge selloff on worries of rising bond yields. On Thursday, Powell said that he was closely monitoring the rising bond yields. The remarks came after he had earlier said that the Fed wasn’t too concerned about the rising rates.
He said that as the economy reopens there will be “some upward pressure on prices” and also mentioned that the Fed would stay “patient” before taking any decision on policy change although as it saw inflation rise. However, that didn’t help boost investors’ confidence as they felt that if Powell continues to take the rising bond yields lightly, it could lead to further selloffs in the Treasury market, resulting in markets to suffer further.
Following Powell’s remarks, the 10-year Treasury yield rose to 1.53%, as he didn’t give any hints of the Fed purchasing assets to keep the rising rates in check.
Economic Data
Data released on Thursday showed that weekly jobless claims for the week ended Feb 27 came in at 745,000, lower than analysts’ expectations of 750,000. The numbers could have been even lower but the brutal winter storms played spoilsport.
In other reports, U.S. factory orders increased 2.6% in January as manufacturing sector continued to put up robust growth. Orders for durable goods that last at least three years rose an unrevised 3.4% in February. Orders for nondurable goods increased 1.9%, lower than expected.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
Stock Market News for Mar 5, 2021
U.S. stocks ended lower for the third consecutive session on Thursday, as Federal Reserve Chairman Jerome Powell’s remarks that he was monitoring the rising bond yields and would keep inflation expectations in check failed to erases worries from the minds of investors. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1.1% or 345.95 points to finish at 30,924.14. The blue-chip index at one point was down more than 700 points to an intraday low of 30,547.53.
The S&P 500 declined 1.3% or 51.25 points to finish at 3,768.47 points. Tech and consumer discretionary sectors were the biggest losers. The Technology Select Sector SPDR (XLK) declined 2.2%, while the Consumer Discretionary Select Sector SPDR (XLY) slipped 2.1%. Ten of the 11 sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq tumbled 2.1% or 274.28 points to close at 12,723.47 points, touching a three-month low. Thursday’s decline also turned Nasdaq negative for this year with a loss of 1.3%. On a intraday basis, the index also at one point entered correction territory after it declined more than 10% from its recent 52-week high attained on Feb 12.
Tech stocks were the worst performers. Shares of Netflix, Inc. (NFLX - Free Report) declined 1.8%, while Tesla, Inc. (TSLA - Free Report) plummeted 4.9%. Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was up 7.12% to 28.57. A total of 18 billion shares were traded on Thursday, higher than the last 20-session average of 15 billion. Decliners outnumbered advancers on the NYSE by a 3.79-to-1 ratio. On Nasdaq, a 5.62-to-1 ratio favored declining issues.
Investors’ Worries on Rising Bond Yields Continue
The Wall Street has been suffering for more than a week owing to the huge selloff on worries of rising bond yields. On Thursday, Powell said that he was closely monitoring the rising bond yields. The remarks came after he had earlier said that the Fed wasn’t too concerned about the rising rates.
He said that as the economy reopens there will be “some upward pressure on prices” and also mentioned that the Fed would stay “patient” before taking any decision on policy change although as it saw inflation rise. However, that didn’t help boost investors’ confidence as they felt that if Powell continues to take the rising bond yields lightly, it could lead to further selloffs in the Treasury market, resulting in markets to suffer further.
Following Powell’s remarks, the 10-year Treasury yield rose to 1.53%, as he didn’t give any hints of the Fed purchasing assets to keep the rising rates in check.
Economic Data
Data released on Thursday showed that weekly jobless claims for the week ended Feb 27 came in at 745,000, lower than analysts’ expectations of 750,000. The numbers could have been even lower but the brutal winter storms played spoilsport.
In other reports, U.S. factory orders increased 2.6% in January as manufacturing sector continued to put up robust growth. Orders for durable goods that last at least three years rose an unrevised 3.4% in February. Orders for nondurable goods increased 1.9%, lower than expected.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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