You are here: Home » International » News » Markets
Business Standard

Wall Street slides over 2% as tech rout deepens; Fed meeting eyed

Dow Jones Industrial Average was down 764.89 points, or 2.23%, at 33,599.61, the S&P 500 was down 115.61 points, or 2.62%, at 4,294.52

Wall Street | US Federal Reserve | S&P 500


Wall Street
Photo: Shutterstock

US stock indexes slid on Tuesday, with the on track to confirm a correction as a selloff in technology stocks ahead of the Federal Reserve's policy meeting overshadowed upbeat results from blue-chip companies including IBM and 3M.

The benchmark index came close to confirming a correction on Monday before bouncing back late in the session. A correction is confirmed when an index closes 10% or more lower than its record closing level.

US equities have had a turbulent start to 2022, with the now down 10.4% from its record closing high on Jan. 3, while the tech-heavy Nasdaq tracked its worst start to the year since 1980.

The Fed will convene its two-day monetary policy meeting later in the day, which will be watched closely for cues on the central bank's timeline for hiking key interest rates to combat inflation.

Fed funds futures traders are pricing in a 25 basis points hike in March, in addition to three more rate increases by the end of the year.

All of the 11 major sectors declined in early trading, with eight of them down more than 2% each.

"It just looks like the market is reacting to new reality of tighter policy from the Fed ... you probably don't see anybody take any huge bets ahead of that meeting on Wednesday," said Dan Eye, chief investment officer at Fort Pitt Capital Group.

Geopolitical tensions in Ukraine have added to uncertainty, with the US Department of Defense stating that about 8,500 American troops were put on heightened alert.

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

The fourth-quarter earnings season has started off on a mixed note, with all eyes now on mega-cap growth company Microsoft's earnings after market close on Tuesday, followed by Apple and Tesla later this week.

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

"Q4 earnings are certainly good, but they're more in line with expectations compared to the huge beats that we've seen over the last four quarters," added Eye.

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

IBM rose 0.6% after the IT giant beat quarterly estimates for revenue and profit, while 3M slipped 2.5% despite beating market estimates for its fourth-quarter results.

American Express jumped 3.4% on upbeat fourth-quarter profit, while another Dow component, Johnson & Johnson, was flat after missing estimates for fourth-quarter revenue.

Declining issues outnumbered advancers for a 6.86-to-1 ratio on the NYSE and for a 4.07-to-1 ratio on the Nasdaq.

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



What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 25 2022. 21:21 IST