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US markets end deeply in red on Tuesday

22 Feb 2023 Evaluate

The US markets settled deeply in red on Tuesday, with Nasdaq ending cut of two and half percent, on concerns about the outlook for interest rates amid a sharp increase in treasury yields. The benchmark ten-year yield more than offset the dip seen last Friday, reaching its highest closing level in over three months. Recent economic data has led to worries the Federal Reserve may raise rates higher than currently anticipated and keep rates at an elevated level for an extended period. On Wednesday, the Fed is scheduled to release the minutes of its latest monetary policy meeting, which could shed additional light on the outlook for interest rates.

Geopolitical concerns also weighed on the markets after Russian President Vladimir Putin said he is suspending Russia's participation in a nuclear arms treaty with the U.S. The announcement by Putin comes after U.S. President Joe Biden made a surprise visit to Ukraine's capital Kyiv on Monday. On the sectoral front, Housing stocks turned in some of the market's worst performances on the day, dragging the Philadelphia Housing Sector Index down by 3.7 percent to its lowest closing level in almost a month. The sell-off by housing stocks came following the release of a report from the National Association of Realtors unexpectedly showing a continued decrease in U.S. existing home sales in the month of January.

Dow Jones Industrial Average fell 697.1 points or 2.06 percent to 33,129.59, Nasdaq dropped 294.97 points or 2.5 percent to 11,492.3 and S&P 500 was down by 81.75 points or 2 percent to 3,997.34.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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