Dow suffers worst day in about 3 weeks and oil ends in correction territory as investors parse Yellen-Powell testimony

U.S. stocks finished solidly lower Tuesday as the first of two days of testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen on the state of the government’s efforts to limit the economic damage from the COVID-19 pandemic concluded without any major surprises. However, rising worries about extended lockdowns in Europe due to the COVID pandemic helped to drive risk appetite lower and push crude-oil futures CL.1, -6.76% into a correcton, defined as a decline of at least 10% from a recent peak. The Dow Jones Industrial Average ended by about 335 points, or 1%, lower at 32,395, marking its worst day since March 4. The S&P 500 index SPX, -0.76% closed off 0.8% to about 3,910, powered lower by declines in industrials XLI, -1.75% and materials XLM, -6.95%, while the Nasdaq Composite Index COMP, -1.12% finished the session 1.1% lower at about 13,228. The slide in stocks acclerated at the end of the session and came even as the 10-year Treasury note yield TMUBMUSD10Y, 1.626% fell nearly 6 basis points to 1.63%. Bond prices rise as yields fall.

View Article Origin Here