- Major U.S. stock indexes edged lower on February 21, 2023, starting the shortened trading week lower.
- The Nasdaq fell 2.5% in Tuesday’s session, while the S&P 500 and Dow fell around 2%.
- Concerns that the Federal Reserve will remain aggressive in raising interest rates and warnings from major retailers contributed to the market decline.
US stocks fell on fears the Fed will need to keep raising interest rates to fight inflation, as major retailers warned higher prices were affecting consumer behaviour. The Dow and S&P 500 lost 2% and the Nasdaq fell 2.5%.
All stocks in the Dow except Walmart (WMT) was in the red. Average pulled down by Home Depot (HD), as shares fell 7% after the home accessories retailer’s sales and outlook missed forecasts. Shares of rival Lowe’s (LOW) and other major retailers such as Nike (NKE), Target (TGT) and Macy’s (M), were also down. Although the stock rose on its financial report, Walmart contributed to negative sentiment with its lower-than-expected earnings. knowledge.
Bond yields rose sharply, with the 10-year Treasury yield hitting its highest level since November. This caused shares of companies sensitive to rising borrowing costs to fall. Tech stocks fell, Apple shares (AAPL), Amazon (AMZN), Alphabet (GOOGLE), Microsoft (MSFT) and Salesforce (CRM) decreasing by 2%. Intel (INTC) and Tesla (TSLA) shares fell 5%. Shares of home builders, banks and credit card providers fell.
Nordson (NDSN) shares fell 14% as the glue dispenser maker’s profit and sales missed estimates and cut its outlook. Expeditors International of Washington (EXPD) also missed on earnings and revenue, and its stock was lower.
General Mills Raises Outlook
General Mills (GIS) shares moved higher after the cereal and other food maker raised its full-year profit and sales forecast. Kellogg (TO) shares also rose. Molson Coors (TAP) profit was better than expected, lifted the brewery’s shares. Copper futures jumped, helping lift shares of Freeport-McMoran (FCX).
Oil and gold prices fell. The US dollar strengthened against the euro and yen, but slipped against the pound. Main, important cryptocurrencies traded in negative territory.