Wall Street

Standard & Poor’s and Nasdaq decline. Powell warns of economic recovery

(Reuters) – The Standard & Poor’s 500 and Nasdaq fell on Tuesday as the Federal Reserve Chairman Jerome Powell warned that the US economic recovery is still far from complete, as the selling affected some of the major technology companies.

Powell also added “the domestic recovery could slip into a risky downward spiral if the COVID-19 is not effectively dominated, asking for more help for businesses and households.

Markets are concerned about what the Fed knows and we don’t” said John Augustin, chief investment officer at Huntington National Bank in Columbus, Ohio.

“The things that are crystal clear to us are the closing of small/ start-up businesses and the continues increase of unemployed people in the service sector. The Fed has to strongly addresses these two problems while working to inject more financial incentives.”.

Officials’ optimistic announcements that the incentives deal could still increase the three major stock indexes on Monday led them offset last week’s losses, which released on news that President Donald Trump had contracted the coronavirus (Covid-19).

As the President Trump returned to the White House on Monday from Walter Reed Military Medical Center hospital, he faced a backlash after he got off his medical mask upon his return and urged Americans not to fear the disease that has killed more than 209,000 people in the United States so far.

The White House spokeswoman Nancy Pelosi and the US Treasury Secretary Steven Mnuchin discussed by phone on Monday the new exemption measures and were willing to talk again on Tuesday.

Seven of the S&P’s eleven major sectors rose and enhanced with the gains led by the battered SPNY sector.

An alternation in value-related sectors (IVX) such as Industrials sectors (SPLRCI) also boosted the Dow’s excellent index, but the Nasdaq decreased from its unprecedented highs to decline following the decline in the major technology heavy stocks.

For companies like Amazon.com Inc (O: AMZN), Apple Inc (O: AAPL), Facebook Inc (O: FB), and Google-owned Alphabet Inc (O: GOOGL) fell between 0.8% and 2.2%, according to reports from the US House of Representatives on antitrust that included a “persuasive call to break up” companies.

At 11:29 a.m. ET, the Dow Jones Industrial Average (DJI) was up 35.20 points, or 0.13%, at 28,183.84, and the S&P 500 (SPX) was down 5.19 points, or 0.15%, at 3,403.44, And the Nasdaq Index (IXIC) fell 62.46 points, or 0.55%, to 11270.03 points.

Also, Boeing Co N: BA decreased by 2.8% after the aircraft manufacturer lowered its expectations for continued demand for aircraft over the next 20 years due to the repercussions of the COVID-19 pandemic.

US-listed shares of BioNTech (O:BNTX) raised 6.3% after the European health agency said it had begun a review of a COVID-19 vaccine which developed by the German biotech and the US drug-maker Pfizer Inc (N:PFE). However, Pfizer shares decreased 0.1 percent.

The shares of audio device producers Sonos Inc (O: SONO) and Logitech (S: LOGN) decreased by 5.2% and 4.7%, respectively, after removing their speakers from Apple’s online stores.

Issued shares outnumbered losing shares by 2.18 to 1 on the New York Stock Exchange and by 1.96 to 1 on the Nasdaq.

The S&P 24 hit a new high record in 52-week without new low, while the Nasdaq 93 hit a new high and seven new lows.

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