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Stock Market News for Mar 3, 2021

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U.S. markets ended sharply lower on Tuesday led by selloff in tech stocks, a day after recording strong gains, as investors waited for Congress to approve another round of coronavirus relief package. All the three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) slipped 0.5% or 143.99 points to close at 31,391.52, after recording its best single day gains since Nov 9 in the previous session

The S&P 500 dropped 0.8% or 31.53 points to finish at 3,870.29 points after advancing more than 2% on Monday. Tech and consumer discretionary sectors were the biggest losers. The Technology Select Sector SPDR (XLK) slid 1.6%, while the Consumer Discretionary Select Sector SPDR (XLY) declined 1.2%. Ten of the 11 sectors of the benchmark index closed in the green.

The tech-heavy Nasdaq slipped 1.7% or 230.04 points to close at 13,358.79 points. Shares of Apple, Inc. (AAPL - Free Report) declined 2.1%, while Facebook, Inc. (FB - Free Report) fell 2.2%. Apple has a Zacks Rank #2 (Buy). 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 3.21% to 24.10. A total of 12.3 billion shares were traded on Tuesday, lower than the last 20-session average of 14.9 billion. Decliners outnumbered advancers on the NYSE by a 1.36-to-1 ratio. On Nasdaq, a 2.64-to-1 ratio favored declining issues.

Worries of Rising Rates Continue

Markets came under pressure once again on Tuesday after recording their best single day gains in the previous session. On Monday, investors got back some of the confidence after the 10-year Treasury note yield declined to a session low of 1.41% after the massive bond-market selloff last week and on upbeat reports of the economy bouncing back to normal.

However, on Tuesday the upbeat sprits once again got dampened as investors felt that the fast distribution of vaccine and the fresh round of government spending to boost the economy would push up inflation and bond yields later this year. Investors over the past few sessions have been feeling jittery as the Fed hasn’t reacted to the higher bond yields which they believe could lead to further selling.

This somewhat made the investors nervous, leading to huge selloff.

Investors Focus on Vaccine Front

Amid the selloff, investors also closely watched developments on the vaccine front, as Merck & Co. Inc. (MRK - Free Report) entered into to an unusual deal to help Johnson & Johnson (JNJ - Free Report) manufacture the one-shot Covid-19 vaccine that is likely to further boost supply.

No economic data was released on Tuesday.

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Johnson & Johnson (JNJ) - free report >>

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Facebook, Inc. (FB) - free report >>

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