Provided by Dow Jones
By Michael Wursthorn Tech stocks rebounded from an early swoon after Federal Reserve Chairman Jerome Powell pledged anew to support the economic recovery, easing concerns about the impact of rising interest rates on the monthslong rally in major U.S. indexes. The Nasdaq Composite Index dropped 0.5% Tuesday after earlier falling as much as 4% earlier in the day. The index, which led the 2020 market bounceback from the coronavirus pandemic thanks to its concentration in shares of technology, biotechnology and other firms promising to grow faster than the economy, has fallen 4.5% since Feb. 12. Tuesday s swings highlight a midwinter shift in investor appetite to real-economy sectors such as banks over the past year s favorites. The reassessment is being driven by investor expectations that Covid-19 vaccinations will pick up, broadening the scope of the economic recovery to a wider range of firms. The rise this month in U.S.
February 23, 2021
Daily FX Market Roundup 02.23.2021
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
• Stocks Erase Gains on Powell’s Comments
• Fed Sees No Rate Hike, No Taper = Broad Based Dollar Decline
• #GBP Breaks 1.41 Despite Mixed Labor Data
• #RBNZ Expected to Leave Monetary Policy Unchanged
•
Investors sold U.S. dollars after Federal Reserve Chairman Jerome Powell made it very clear on Tuesday that there will be no interest rate hikes or tapering in the foreseeable future. The U.S. economy is recovering, inflation is on the rise and with more Americans getting vaccinated, the outlook is bright. In fact, Powell expects to raise the Fed’s 2021 GDP forecast to the range of 6%. Yet these improvements are not enough for the central bank to move away from their commitment to keep monetary policy easy until a sustainable recovery returns the economy to pre-COVID levels.
MONEYWEB
app instead?
And stocks rebound from their lows.
By Katie Greifeld, Bloomberg
24 Feb 2021 08:21
Image: Alex Kraus/Bloomberg
The âbuy the dipâ mentality thatâs become the mantra of pandemic-era markets paid off on Tuesday.
Just before 10 a.m. in New York, the Nasdaq 100 fell by more than 3%, wiping out the tech-heavy indexâs advance for the year. Around that time, âbuy the dipâ began trending on Twitter as day traders took to their screens. By 3:20 p.m., the benchmark had turned positive, the first time itâs erased a loss of that magnitude since the pandemic panic last February. It closed down 0.2%