Tech shares dropped for a second day on Tuesday in the face of higher interest rates and a rotation into stocks more linked to the economic recovery.
The Nasdaq Composite slipped 1.2%, falling below its 50-day moving average, a key technical indicator, for the first time since Nov. 3. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dipped 50 points after shedding 360 points at its low.
Stocks bounced off their lows after Fed Chair Jerome Powell’s prepared testimony to Congress said that inflation was “soft,” easing fears of a policy change by the central bank. Powell said price pressures remain mostly muted and the economic outlook is still “highly uncertain.” (CNBC)