The stock market slips by more than 2%, the technological crisis worsens and the meeting of the Fed is expected.


The benchmark index almost confirmed a correction on Monday before rebounding at the end of the session. A correction is confirmed when an index closes 10% or more below its closing high.

US equities had a rocky start to 2022, with the S&P 500 down 10.4% from its January 3 closing high, while the tech-heavy Nasdaq had its worst start to the year since 1980.

The Fed will hold its two-day monetary policy meeting later in the day, which will be followed closely to hear the central bank’s timetable for raising key interest rates to fight inflation.

Federal funds futures traders expect a 25 basis point hike in March, plus three more rate hikes by the end of the year.

The 11 major sectors of the S&P 500 all fell in the first few changes, with eight of them losing more than 2% each.

“It just seems like the market is reacting to the new reality of tougher Fed policy…you probably won’t see anyone taking huge bets until Wednesday’s meeting,” said Dan Eye, chief investment officer. at Fort Pitt Capital Group.

Geopolitical tensions in Ukraine added to the uncertainty, with the US Department of Defense saying about 8,500 US troops had been placed on heightened alert.

As of 10:06 a.m. ET, the Dow Jones Index was down 764.89 points, or 2.23%, 33,599.61, the S&P 500 Index was down 115.61 points, or 2.62%, 4,294.52, and the Nasdaq Composite was down 395.35 points, or 2.85%, to 13,459.78.

The fourth-quarter earnings season got off to a mixed start, with all eyes now on Microsoft’s mega-growth performance after market close on Tuesday, and then Apple and Tesla later in the week.

Earnings for S&P 500 companies were expected to rise 24.1% year-over-year, according to IBES estimates from Refinitiv.

“Q4 earnings are certainly good, but more in line with expectations compared to the beat standards we’ve seen over the past four quarters,” Eye added.

General Electric Co fell 8.4% after the industrial conglomerate posted declining quarterly revenue.

IBM rose 0.6% after the computer giant beat Wall Exchange estimates for quarterly revenue and profit, while 3M slipped 2.5% despite overshooting. market estimates for its fourth quarter results.

American Express jumped 3.4% on upbeat fourth-quarter earnings, while another Dow Jones component, Johnson & Johnson, held steady after missing fourth-quarter earnings estimates.

Declining stocks outnumbered rising stocks by a ratio of 6.86 to 1 on the NYSE and 4.07 to 1 on the Nasdaq.

The S&P index recorded no new 52-week highs and two new lows, while the Nasdaq recorded six new highs and 45 new lows.



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