Federal Reserve Chairman Jerome “Pumping” Powell has kept the bull market afloat by injecting unlimited amounts of liquidity into the markets. However, one statement by him when testifying in front of the Senate Banking Committee wreaked havoc on the markets on Tuesday.
That being, “is it time to retire the term, transitory”, when addressing the pace of inflation in the US economy that roiled the markets. The index was already on shaky footing as Omicron fears continued resulting in a steep decline in premarket trading after Monday’s recovery from overnight bashing.
His statement around 11:00 AM EST thwarted any attempt for a repeat performance of Monday’s comeback. Instead, the index was hammered, easily taking out last week’s low (4577.25), falling to 4557 in the chaotic last few minutes of the session. A huge sell imbalance of $8.1B caused the index and several issues to close at a steep discount to fair value.
Therefore, the actual closing price of 4566.25, which was a decline of 84.75 handles is reflected by the index’s last after-hours print being nearly 20 handles higher at 4585.50.
The biggest gainer of the top components was Apple Inc. (NASDAQ: AAPL) who had a mind of its own in the session. For the session, it gained $5.06 or 3.2% to post a new all-time closing high by a wide margin at $165.30.
The biggest loser of the top components was Meta Platforms Inc. (NASDAQ: FB). For the session, the issue declined by $13.57 or 4% to close at $324.46.
PreMarket Prep Plus Stock Of The Day: AT&T Inc. (NYSE: T)
The weak get weaker. Much weaker. A new 12 year low was made in Tuesday’s session. Read more about T here.