US Stocks fall on virus concerns

The US stock market finished session lower on Tuesday, 23 March 2021, as risk appetite receded on concerns about the cost of infrastructure spending and potential tax hikes to pay for President Joe Biden's $1.9 trillion relief bill. Meanwhile, worsening COVID-19 conditions in Europe and raising concerns about global economic recovery from the pandemic also weighed down sentiments.

At the close of trade, the Dow Jones Industrial Average index fell 234.33 points or 0.71% to 32,627.97 and the S&P 500 dropped 2.36 points or 0.06% to 3,913.10. The tech-heavy Nasdaq Composite Index jumped 99.07 points or to 0.76% 13,215.24.

The weakness on Wall Street emerged on concerns about extended coronavirus lockdowns in Europe amid worries a new wave of infections. Rising coronavirus cases have prompted Germany to enact lockdown measures over Easter as Europe's largest economy battles a resurgence of the virus. Meanwhile, France has broadened lockdowns in the country, and Italy has issued new restrictions.

Traders also kept an eye on Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen's virtual testimony before the House Financial Services Committee. In prepared remarks, Powell reiterated the Fed's recent assessment that indicators of economic activity and employment have turned up recently. Powell noted that the economic recovery is "far from complete," however, and stressed the Fed will continue to provide the support that the economy needs for "as long as it takes."

Oil prices tumbled, with West Texas Intermediate crude down 4% to $59.09 per barrel. Brent crude, oil's international benchmark, fell 4.1% to $61.94 per barrel.

ECONOMIC NEWS: The Commerce Department said new home sales plummeted by 18.2 percent to an annual rate of 775,000 in February after jumping by 3.2 percent to an upwardly revised rate of 948,000 in January.

Powered by Capital Market - Live News