Global Market Square
U.S. and global stocks ended the day with mixed results in late trading as inflation worries took the markets deep into negative territory.
However, during testimony to Congress, Federal Reserve Chair Jerome Powell stated that the Fed’s “expectation was not to raise interest rates from their current levels to allow the economy to reach full employment.”
The Fed chair also said he was cautiously optimistic that “a return to more normal conditions would occur this year”; and reaffirmed the Reserve’s intention to continue its strong support of the U.S. economy.
The big loser the past two days has been the tech-heavy Nasdaq Composite, which has lost 4.15% in the last five trading sessions. As the economy normalizes with fewer restrictions, the tech sector’s gains may suffer. While the economic transition happens, the valuations of most tech stocks will suffer.
As we are close to ending the initial first 6o days of the year, it becomes quite clear how the power of an adequately diversified portfolio provides investors with peace of mind.
Wall Street summary for February 23, 2021,
- The Dow Jones Industrial Average closed at 31,537.35, up 15.66 points, or 0.05%.
- The Standard & Poor’s 500 closed at 3,881.36, up 4.86 points, or 0.13%.
- The Nasdaq Composite Index closed at 13,465.20, down 67.85 points, or 0.50%.
- The Birling Capital Puerto Rico Stock Index closed at 2,186.91, up 16.26 points, or 0.75%.
- The U.S. Treasury 10-year note closed at 1.37%
- The U.S. Treasury 2-year note closed at 0.11%