Wall Street Ends Mixed in The Face of Mounting Uncertainties
U.S. stocks struggled on Tuesday, with the S&P 500 and the Nasdaq touching one-month lows as a dour consumer confidence report put mounting economic uncertainties into sharp relief and prompted a selloff.
The mood of the consumer, who props up about 70% of U.S. GDP, has dimmed considerably in February, according to The Conference Board's consumer confidence index, which registered its steepest monthly drop since August 2021.
Rising consumer uncertainties were laid bare by an 11.3% plunge in the near-term expectations component, well below the level associated with impending recession, suggesting Americans are growing anxious about the potential negative economic impact of the policies of President Donald Trump's administration.
Richmond Federal Reserve President Tom Barkin said on Tuesday that current uncertainties call for a measured, cautious approach to monetary policy.
Interest-rate futures imply the U.S. Federal Reserve will hold its key interest rate steady for the first half of the year, according to data compiled by LSEG.
The CBOE market volatility index (.VIX), widely known as the "fear index," spiked to its highest level since January 27.
The S&P 500 (.SPX), lost 27.33 points, or 0.46%, to end at 5,955.92 points, while the Nasdaq Composite (.IXIC), lost 257.37 points, or 1.33%, to 19,029.56. The Dow Jones Industrial Average (.DJI), rose 161.74 points, or 0.37%, to 43,622.95.
Nvidia (NVDA.O), dropped ahead of the chipmaker's much-anticipated quarterly earnings report expected after the bell on Wednesday, pulling the Philadelphia SE Semiconductor index lower.
U.S. officials, in a bid to restrict Beijing's technological capabilities, are aiming to restrict the quantity and types of Nvidia chips that can be exported to China without a license, according to a Bloomberg report.
Source : Reuters
