For the US stock market, this Tuesday is not very good.
On Tuesday, March 5th Eastern Time, the three major stock indexes in the United States all fell, with the Dow Jones Industrial Average falling 1% on Tuesday; The S&P 500 index fell 1%; The Nasdaq Composite Index closed down 1.7%. Moreover, the tech giants that have recently helped support the rise of the US stock market lost a total market value of $233 billion on Tuesday.
Among them, Apple's stock price closed down 2.8% on Tuesday; Amazon fell nearly 2%; Microsoft's stock price fell by 3%; The stock price of Alphabet Inc., the parent company of Google, fell by 3%; Meta platform and Tesla fell 1.6% and 3.9% respectively.
Among the seven popular technology stocks, only NVIDIA closed 0.9% higher on Tuesday.
Normal callback
According to Dow Jones market data, Tuesday's decline marked the third largest daily decline in the market value of the "Big Seven" this year, with the largest daily decline being the $375 billion drop recorded on January 31st.
Michael Sansotra, Chief Investment Officer of Silver Capital Management, a US asset management company, believes that Tuesday's decline in the US stock market was not a panic selling. He pointed out that with the recent record highs in the stock market, it is not surprising that some companies that have driven the stock market up have seen their stock prices fall back.
"This is just the normal market volatility in the strong bull market so far this year," said Sansotra
Peter Cardillo, Chief Market Strategist at Sparta Capital Securities, believes that "we are currently in a correction," and the specific future trend will depend on Federal Reserve Chairman Powell's biannual testimony speech and US February non farm employment data.
Jerome Powell is scheduled to begin a two-day congressional testimony on Wednesday, March 6th, as investors are eager to learn more about the Federal Reserve's ultimate plan to shift towards rate cuts.
Due to the current inflation rate in the United States still exceeding the Federal Reserve's annual target of 2%, several Federal Reserve officials have previously stated that the Federal Reserve is not in a hurry to prematurely or aggressively reverse its interest rate hike policy. Based on this, investors have lowered the expected time and magnitude of interest rate cuts this year.
In addition, the February non farm employment data to be released this Friday is also crucial. Although the Federal Reserve has maintained short-term policy interest rates at a 22 year high, the job market and economy remain surprisingly resilient.