Wall Street Ends off Session Lows as Tech Keeps Losses in Check
By Yasin Ebrahim
Investing.com - Wall Street ended off session lows despite late selling Tuesday, as gains in technology and expectations for the Federal Reserve to reiterate its accommodative stance on monetary policy kept losses in the broader market in check.
The Dow Jones Industrial Average fell 1.09%, or 300 points, the S&P 500 slipped 0.78%, while the Nasdaq Composite added 0.29% to rise to another record high.
The Federal Reserve kicked off its two-day meeting on Tuesday and is widely expected to stand pat on interest rates but reiterate its readiness to roll out more stimulus to ensure an eventual economic recovery will be robust.
At its previous meeting, the Fed recently floated the idea of using yield curve control, which allows central banks to target specific government bond yield through the purchase and sale of bonds, to help keep lending rates near zero.
Beyond monetary policy, investor appetite for growth stocks returned with FAANG stocks catching a bid, led by Facebook (NASDAQ:FB) and Apple (NASDAQ:AAPL).
Apple jumped 3.16% as investors cheered a report suggesting the tech giant is set to begin production of iPhone 12 in July.
The general malaise in the broader market was paced by a slump in energy amid falling oil prices as investors appeared to take some profit on names in the sector that have jumped sharply recently.
Apache (NYSE:APA), Occidental Petroleum (NYSE:OXY), and Marathon Oil (NYSE:MRO), all of which are up more than 30% over the past five days, fell sharply, with the latter down 9.19%.
The reopening trade – bullish bets on stocks tied to the progress of the economic reopening – took a breather, with travel and tourism stocks down sharply.
American Airlines (NASDAQ:AAL) fell 8.8%, Carnival (NYSE:CCL) slid 7.75%, and Marriott (NASDAQ:MAR) slipped 5.5%.
In other news, Stitch Fix (NASDAQ:SFIX) fell 4.6% after the company reported a wider-than-expected loss of $0.33 in its fiscal third quarter.
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