Tag: drops

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Stocks slide in violent U-turn from prior session; Nasdaq drops 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Stocks slide in violent U-turn from prior session; Nasdaq drops 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

U.S. stocks sank Thursday, giving back gains after a rally on Wall Street on Wednesday, as traders continued to contemplate the Federal Reserve’s latest monetary policy decision.

The S&P 500, Dow and Nasdaq dropped sharply. Tech stocks underperformed, and the Nasdaq sank by 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its worst day since June 2020. The Dow shed more than 1,000 points, or 3.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to end at 32,997.97. A day earlier, the blue-chip index posted it best single-session gain since May 2020, rising 2.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Nasdaq Composite surged by 3.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow added more than 900 points, or 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The moves came in the wake of the Federal Reserve’s first half-point rate hike since 2000, as the central bank took a notable step to address inflation currently running at its hottest rates in 40 years. The central bank also laid out its plans to begin rolling assets off its $9 trillion balance sheet starting June 1. The pace of this announced balance sheet reduction largely matched Wall Street’s expectations heading into Wednesday’s Fed statement.

“Thursday’s stock selloff suggests that Wednesday’s post-FOMC market action was a relief rally. We are still not out of the woods yet, as there is still too much uncertainty over how the Federal Reserve’s actions will tame inflation without causing a recession,” Zach Stein, chief investment officer of Carbon Collective, wrote in an email Thursday. “The concerns that triggered the stock market correction over the past few months, such as inflation, the Russia and Ukraine war and surging oil prices, are still with us and haven’t been resolved yet.”

But importantly, during his press conference Wednesday, Fed Chair Jerome Powell suggested the central bank was not currently discussing plans to raise interest rates by 75 basis points in the near-term. Stocks had risen immediately following those remarks, with many investors breathing a sigh of relief that the Fed was unlikely to raise interest rates even more aggressively in the coming months. Some had feared such a move would issue too strong a jolt to the economy already showing some signs of slowing. Still, however, Powell suggested that there was a “broad sense among the committee that additional 50 basis point increases should be on the table at the next couple of meetings.”

“I think really what happened yesterday is that sentiment became so one-sided, really concerned about an overly hawkish Fed,” Keith Lerner, Truist chief market strategist, told Yahoo Finance Live Thursday morning. “And a little bit of good news went a long way in Powell basically saying that 75 basis points isn’t under current consideration. I still think the debate about inflation peaking and how quickly it will come down will inject volatility.”

And even in absence of supersized 75 basis-point rate hikes, the Fed’s path toward raising interest rates from ultra-low levels and embarking on quantitative tightening still presents a risk to economic growth, with markets having grown accustomed to the central bank’s accommodative monetary policies during the pandemic. Powell himself acknowledged that some trade-off would take place between bringing inflation down and maintaining economic activity.

“There may be some pain associated with getting back to that, but the big pain is in not dealing with inflation and allowing it to become entrenched,” Powell said during his press conference.

Others also underscored these risks.

“In all policy moves, there are negative consequences, which hopefully are muted, and are less impactful than the issue that is being addressed and today that issue is inflation,” Rick Rieder, BlackRock chief investment officer of global fixed income, wrote in an email Wednesday. “The consequences we risk in policy tightening are potential recession, potential lost jobs and wages, and clearly tighter financial conditions that will weigh on virtually all financial markets.”

“There are many factors out of the Fed’s control (supply chain disruptions and geopolitics, for instance), but we’ll be watching closely to see how the Fed’s tightening of financial conditions impacts the broad economy and employment levels, which are very firm today but can clearly soften alongside of aggressive inflation-fighting monetary policy,” Rieder added.

—

4:04 p.m. ET: Stocks slide in violent U-turn from prior session: Nasdaq drops 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Dow sheds 1,060 points, or 3.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): -153.27 (-3.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,146.90

  • Dow (^DJI): -1,063.09 (-3.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,997.97

  • Nasdaq (^IXIC): -647.16 (-4.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,317.69

  • Crude (CL=F): +$0.47 (+0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $108.28 a barrel

  • Gold (GC=F): +$10.20 (+0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,879.00 per ounce

  • 10-year Treasury (^TNX): +14.9 bps to yield 3.0660{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

10:44 a.m. ET: Stocks tumble, Nasdaq drops more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 10:43 a.m. ET:

  • S&P 500 (^GSPC): -119.32 (-2.77{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,180.85

  • Dow (^DJI): -728.01 (-2.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,333.05

  • Nasdaq (^IXIC): -527.44 (-4.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,437.42

  • Crude (CL=F): +$1.51 (+1.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $109.32 a barrel

  • Gold (GC=F): +$17.00 (+0.91{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,885.80 per ounce

  • 10-year Treasury (^TNX): +12.9 bps to yield 3.0460{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

10:02 a.m. ET: Weekly jobless claims rise to 200,000 for the first time since February

U.S. initial unemployment claims rose to 200,000 for the first time since February last week, but still held at a historically low level as the labor market remained tight.

Initial jobless claims increased to the 200,000 threshold for the week ended April 29, the Labor Department said in its weekly report Thursday. During the prior week, claims had totaled 181,000.

Continuing jobless claims, which track the total number of individuals filing claims across regular state programs, declined to 1.384 million from the prior week’s 1.403 million. This marked the lowest level for continuing claims since January 1970.

—

9:34 a.m. ET: Stocks open lower

Here were the main moves in markets as of 9:34 a.m. ET:

  • S&P 500 (^GSPC): -50.41 (-1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,249.76

  • Dow (^DJI): -302.44 (-0.89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,758.62

  • Nasdaq (^IXIC): -217.35 (-1.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,747.51

  • Crude (CL=F): +$2.89 (+2.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $110.70 a barrel

  • Gold (GC=F): +$33.20 (+1.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,902.00 per ounce

  • 10-year Treasury (^TNX): +8.6 bps to yield 3.0030{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

7:50 a.m. ET: Stock futures head lower

  • S&P 500 futures (ES=F): -28.25 points (-0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,267.00

  • Dow futures (YM=F): -162 points (-0.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,806.00

  • Nasdaq futures (NQ=F): -116.00 points (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,415.25

  • Crude (CL=F): +$0.79 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $108.60 a barrel

  • Gold (GC=F): +$28.80 (+1.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,897.60 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 2.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:01 p.m. ET Wednesday: Stock futures open lower

Here’s where markets were trading Wednesday evening:

  • S&P 500 futures (ES=F): -6 points (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,289.25

  • Dow futures (YM=F): -40 points (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,929.00

  • Nasdaq futures (NQ=F): -20.5 points (-0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,510.75

A trader works on the floor of the New York Stock Exchange NYSE in New York, the United States, April 26, 2022. U.S. stocks plunged on Tuesday with the tech-heavy Nasdaq closing down nearly 4 percent, as heavy selling intensified on Wall Street. The Dow Jones Industrial Average tumbled 809.28 points, or 2.38 percent, to 33,240.18. The S&P 500 fell 120.92 points, or 2.81 percent, to 4,175.20. The Nasdaq Composite Index shed 514.11 points, or 3.95 percent, to 12,490.74. (Photo by Michael Nagle/Xinhua via Getty Images)

A trader works on the floor of the New York Stock Exchange NYSE in New York, the United States, April 26, 2022. U.S. stocks plunged on Tuesday with the tech-heavy Nasdaq closing down nearly 4 percent, as heavy selling intensified on Wall Street. The Dow Jones Industrial Average tumbled 809.28 points, or 2.38 percent, to 33,240.18. The S&P 500 fell 120.92 points, or 2.81 percent, to 4,175.20. The Nasdaq Composite Index shed 514.11 points, or 3.95 percent, to 12,490.74. (Photo by Michael Nagle/Xinhua via Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

Read the latest financial and business news from Yahoo Finance

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Stocks fall, Nasdaq drops as Netflix slides after subscribers miss

Stocks fall, Nasdaq drops as Netflix slides after subscribers miss

Stocks ended a volatile week lower, with investors rotating further away from growth and technology stocks that had outperformed early on during the pandemic.

The Nasdaq plummeted nearly 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, clocking in its worst week since March 2020, while the S&P 500 and Dow accelerated losses. A day earlier, the Nasdaq Composite dropped more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, adding to losses after sinking into a correction earlier this week. The Nasdaq has shed 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the year-to-date. 

Shares of Netflix (NFLX) sank more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the company posted a first-quarter subscriber growth outlook that fell far short of expectations, with the streaming giant projecting 2.5 million new users for the first quarter of 2022 versus the 6.3 million anticipated, according to Bloomberg data. Shares of Disney (DIS) and Roku (ROKU) fell in sympathy. Meanwhile, Peloton (PTON) — which had been another darling of the so-called “stay-at-home” trade during the pandemic — recovered some losses after falling to a near two-year low on Thursday, after CNBC reported the company was cutting production of its fitness products due to flagging demand. 

“It is these infamous stay-at-home plays … that had been bid up to valuations that get to the point where they’re priced for perfection,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told Yahoo Finance Live on Thursday. “Anything that is released about the companies’ investment results or prospects that doesn’t meet or exceed very elevated expectations leads to gigantic disappointment in the form of a share price decline.” 

“This is indicative of companies that, again, have valuations that have been bid up by investors who, on disappointment, decide to sell first and ask questions later, and therefore leave huge carnage in their wake as valuations compress to better reflect prospects under a more normal economic climate,” Luschini added.  

The drop in many closely watched, highly valued technology stocks — and the broader stock indexes — also came alongside ongoing investors jitters about a potential near-term move on interest rates from the Federal Reserve. The Fed’s next policy-setting meeting is set to take place next week, with market participants largely pricing in a first interest-rate hike out from the central bank after the Fed’s March meeting. These expectations for higher rates and less liquidity from the Fed this year have also been a key driver of recent equity price action, many strategists noted. 

“I think there is a rotation going on towards those areas of the market that have been neglected for a long time — not just months, but years. Areas like financials and energy. Even health care, which is an area that had done a bit better during the pandemic, but really isn’t seeing any kind of multiples like it did in the past,” Jeffrey Kleintop, Charles Schwab chief global investment strategist, told Yahoo Finance Live on Thursday. 

“I think those areas of the market have more durability here as we look at an environment where earnings growth is slowing so valuations matter more,” he added. “And many of these companies can look to generate earnings growth in this environment of rising interest rates and commodity prices, whereas tech is a bit more challenged as goods demand begins to slow.”

—

4:02 p.m. ET: Nasdaq notches worst week since 2020

Here were the main moves in markets as of 4:02 p.m. ET:

  • S&P 500 (^GSPC): -85.00 (-1.90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,397.73

  • Dow (^DJI): -449.89 (-1.30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,265.50

  • Nasdaq (^IXIC): -385.10 (-2.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,768.92

  • Crude (CL=F): -$0.84 (-0.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.71 a barrel

  • Gold (GC=F): -$12.10 (-0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,830.50 per ounce

  • 10-year Treasury (^TNX): -8.6 bps to yield 1.7470{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

1:04 p.m. ET: ‘I certainly think technology and growth is going to be a sector you want to be in’ 

As the Nasdaq sinks further into a correction and individual technology stocks come under considerable pressure, some analysts see the pick-up of tech earnings season next week as the start of a potential reprieve for at least some of these growth names. 

“The re-thinking of valuations really just follows in the wake of rising interest rates. So we averaged 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the yield on the U.S. 10-year for all of last year, and this year we likely average somewhere between 1.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a},” National Chief Market Strategist Art Hogan, told Yahoo Finance Live on Friday. “So that price and value calculation is obviously putting pressure on multiples across the technology complex.” 

“At some point in time we’ll look at this and say we’re probably overdone and we’ve taken too much multiple compression,” he added. “And what likely will be the signal that that’s the case will be when we get into earnings season in earnest next week … and see where the winners and losers really sit.” 

“I certainly think technology and growth is going to be a sector you want to be in [for] 2022,” Hogan said. “But I think you want to be in it in companies that measure themselves in price to earnings.”

—

10:40 a.m. ET: Leading Economic Index posts solid jump in December: Conference Board

An index tracking future domestic economic conditions accelerated in December, pointing to still-solid growth trends in the U.S. even amid ongoing concerns over the pandemic, inflation, and a more hawkish tilt to monetary policy. 

The Conference Board’s closely watched Leading Economic Index (LEI) rose 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December, matching consensus estimates, according to Bloomberg data. This picked up from November’s 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} clip, which was downwardly revised from the 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain previously reported. 

“The U.S. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring,” Ataman Ozyildirim, senior director of economic research at The Conference Board, said in a press statement. 

“For the first quarter, headwinds from the Omicron variant, labor shortages, and inflationary pressures—as well as the Federal Reserve’s expected interest rate hikes—may moderate economic growth,” Ozyildirim added. “The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2 percent (annualized). Still, for all of 2022, we forecast the US economy will expand by a robust 3.5 percent—well above the pre-pandemic trend growth.”

—

9:31 a.m. ET: Stocks open lower 

Here’s where markets were trading Friday morning: 

  • S&P 500 (^GSPC): -12.92 (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,470.23

  • Dow (^DJI): -69.52 (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,645.87

  • Nasdaq (^IXIC): -57.82 (-0.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,095.93

  • Crude (CL=F): -$0.60 (-0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.95 a barrel

  • Gold (GC=F): +$0.10 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,842.70 per ounce

  • 10-year Treasury (^TNX): -7.8 bps to yield 1.756{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

9:27 a.m. ET: Bitcoin extends declines, falling to around $38,000

Cryptocurrency prices tracked the volatility across risk assets this week. 

Bitcoin, the largest cryptocurrency by market capitalization, saw prices sink by 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to below $38,000 at Friday’s lows, according to Yahoo Finance data. That marked the lowest level since early August.  

Other major cryptocurrency prices also sank. Ethereum fell by more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to about $2,800 Friday morning in New York. Solana prices sank 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to below $120. 

—

7:31 a.m. ET Friday: Stock futures hold lower, Netflix weighs on Nasdaq 

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): -19.75 points (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,455.00

  • Dow futures (YM=F): -68 points (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,548.00

  • Nasdaq futures (NQ=F): -115.5 points (-0.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,725.50

  • Crude (CL=F): -$1.38 (-1.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.17 a barrel

  • Gold (GC=F): -$8.60 (-0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,834.00 per ounce

  • 10-year Treasury (^TNX): -5.3 bps to yield 1.781{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:01 p.m. ET Thursday: Stock futures open lower

Here’s where markets were trading Thursday evening: 

  • S&P 500 futures (ES=F): -17 points (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,457.75

  • Dow futures (YM=F):—41 points (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,575.00

  • Nasdaq futures (NQ=F): -128.25 points (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,712.75

NEW YORK, NEW YORK - JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Read the latest financial and business news from Yahoo Finance

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Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Stocks were mixed on Tuesday with technology stocks under further pressure, as investors further mulled the market implications of Federal Reserve Jerome Powell’s renomination to lead the central bank.

The S&P 500 ended slightly higher. The Nasdaq lagged as investors further turned away from technology and growth stocks. The Dow — which is heavily weighted in cyclical stocks — gained more than 150 points, or 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, during afternoon trading as energy and financials shares outperformed. 

U.S. West Texas intermediate crude oil futures (CL=F) recovered losses and rose 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after dropping more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} earlier in the morning. The move came after the White House announced it would be releasing a total of 50 million barrels of oil from the Strategic Petroleum Reserve (SPR), in tandem with similar moves from China, Japan, India and South Korea and the U.K., to try and ease rising energy prices with additional supply. In a speech on Tuesday, Biden said the reserve releases “will not solve the problem of high gas prices overnight but will make a difference.”

Shares of Zoom Video Communication (ZM) slid even after the company posted better-than-expected quarterly revenue growth and full-year guidance, with usage of the video conferencing company’s software slowing amid the reopening. Companies including Nordstrom (JWN), The Gap (GPS) and Autodesk (ADSK) are set to report quarterly results on Tuesday.

Federal Reserve Chair Jerome Powell’s renomination to the top leadership position at the central bank captured market attention this week, with many investors reacting favorably to the likelihood that the Fed’s previously telegraphed monetary policy framework would remain in place with Powell’s reappointment. That includes expectations for current asset-purchase tapering to take place through the middle of next year, and for at least one interest rate hike to take place before the end of 2022.

“Continuity at a time of such extraordinary uncertainty is certainly welcome news. We have extraordinary uncertainty because we’re pivoting from the phase of the cycle where the Fed had been shoring up the recovery from the pandemic-induced recession, and … it did avoid a meltdown in financial markets,” Diane Swonk, Grant Thornton chief economist, told Yahoo Finance Live. “But now we’ve got very easy financial market conditions and we’re dealing with inflation. And having to pivot to dealing with inflation and tamp it down without derailing the recovery — that’s a very hard thing to pull off. We’ve not seen the Fed actually chase inflation down since the early 1980s.”

President Joe Biden also nominated Fed Governor Lael Brainard – previously viewed as a potential candidate for the Fed Chair position to replace Powell — as Vice Chair of the Board of Governors for the Fed. With these two nominations in place, market participants have turned their attention to who might fill he three vacant and soon-to-be vacant seats on the Fed Board, which includes the key Vice Chair for Supervision role. Biden said in a press statement Monday morning he expected to announce those appointments “beginning in early December.”

“Political decisions like this are competitions between affinity — you like someone in your own party — and convenience — what can you get the Senate to do for you, and will markets receive it well? You have to view the Powell-Brainard picks as part … of a bigger package,” Vincent Reinhart, Dreyfus-Mellon chief economist and macro strategist, told Yahoo Finance Live. “The White House is going to have three new governors to appoint, and presumably that’s going to tilt more progressive. So bottom-line, six months from now, the group of people that Chair Powell has to wrangle to make decisions is going to be more dovish than it is today.”

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4:07 p.m. ET: Stocks end mixed as tech rout extends: Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:07 p.m. ET:

  • S&P 500 (^GSPC): +7.76 (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,690.70

  • Dow (^DJI): +194.55 (+0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,813.80

  • Nasdaq (^IXIC): -79.62 (-0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,775.14

  • Crude (CL=F): +$2.01 (+2.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.76 a barrel

  • Gold (GC=F): -$15.50 (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,790.80 per ounce

  • 10-year Treasury (^TNX): +4.2 bps to yield 1.6670{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:55 p.m. ET: Ark Innovation Fund on track for worst 5-day drop since March as tech rout deepens

Cathie Wood’s Ark Innovation Fund (ARKK) was pacing for its worst 5-day performance in eight months, as the fund heavily weighted in growth stocks was hit by this week’s technology stock rout. 

The exchange-traded fund was off by about 12.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through intraday trading on Tuesday. That’s come as some of the fund’s biggest holdings have posted significant declines over that period: Teledoc Health and Zoom Video Communications, comprising a 5.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 4.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} weight in the ETF, respectively, have each dropped more than 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Other holdings including Roku, Square and Twilio have also dropped by double-digit percentages over that period. 

One notable exception has been Tesla, or the largest holding in the ETF. Shares of the electric-vehicle maker have risen 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through Tuesday afternoon. 

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9:49 a.m. ET: U.S. services PMI falls to two-month low, while manufacturing PMI rises to two-month high: IHS Markit

Closely watched indices tracking economic activity in both the U.S. services and manufacturing sectors showed a divergence in early November, with the supply constraints and rising prices dampening growth especially in private service industries. 

IHS Markit’s preliminary November U.S. services purchasing managers’ index (PMI) unexpectedly fell to 57.0 from 58.7 in October, marking the lowest level in two months. Consensus economists had been looking for the index to rise to 59.0, according to Bloomberg data. Readings above the neutral level of 50.0 indicate expansion in a sector.

The firm’s manufacturing PMI, however, rose to a two-month high of 59.1 and matched expectations. The manufacturing PMI had been at 58.4 in October. Taken together with the drop in the services PMI, the composite PMI for November fell to 56.5 from 57.6 in October, in a sign of slowing overall growth. 

“The slowdown underscores how the economy is struggling to cope with ongoing supply constraints,” Chris Williamson, chief business economist for IHS Markit, wrote in a press statement. Although supplier delivery delays eased to the lowest for six months, the lengthening of lead times remains far greater than anything seen prior to the pandemic, restricting output relative to demand and once again causing prices to rise sharply.” 

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9:34 a.m. ET: S&P 500, Nasdaq extend declines as tech drop continues

Stocks open mixed on Tuesday, with both the S&P 500 and Nasdaq declining as technology stocks added to Monday’s losses. 

The Dow hovered little changed, with financials and other cyclical stocks rising further following Federal Reserve Chair Jerome Powell’s renomination to keep his role as leader of the central bank. Goldman Sachs, Chevron and JPMorgan Chase outperformed in the 30-stock index, while Microsoft, Salesforce.com and Nike weighed to the downside. 

Treasury yields also gained across the long end of the curve. The benchmark 10-year yield rose more than 2 basis points to drift just below 1.646{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

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7:33 a.m. ET Tuesday: Stock futures mostly lower 

Here’s where markets were trading Tuesday morning:

  • S&P 500 futures (ES=F): -1 point (-0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,678.75

  • Dow futures (YM=F): +21 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,592.00

  • Nasdaq futures (NQ=F): -26.75 points (-0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,355.25

  • Crude (CL=F): -$0.42 (-0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.33 a barrel

  • Gold (GC=F): -$9.30 (-0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,797.00 per ounce

  • 10-year Treasury (^TNX): +2.6 bps to yield 1.651{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:06 p.m. ET Monday: Stock futures open slightly higher

Here’s where markets were trading Monday evening:

  • S&P 500 futures (ES=F): +7.5 points (+0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,687.25

  • Dow futures (YM=F): +49 points (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,620.00

  • Nasdaq futures (NQ=F): +28.5 points (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,410.50

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter