Highlights
Stock indexes were mixed Tuesday with weakness in health care dampening the Dow and technology gains lifting the Nasdaq. The Dow Jones industrial average lost 0.8 percent, the S&P 500 gained 0.4 percent to close at a new high and the Nasdaq rose 0.9 percent. US Treasury yields rose in longer maturities and declined in shorter maturities. Oil prices advanced and the dollar slipped.
A selloff in United Health depressed the Dow after disappointing news about expected Medicare reimbursement rates. Other healthcare plays suffered big drops too, especially CVS and Humana. Tech stocks saw strong gains, led by Apple, Meta, and Microsoft as traders are bullish ahead of earnings releases due this week.
Markets are on watch for the Federal Reserve policy announcement due Wednesday afternoon where expectations call for no rate change. Lots of interest attends Fed Chair Jerome Powell's press conference as investors watch how he defends the Fed's independence and whether Powell will stay on as a board member when his term as chair ends in May.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.