Big Tech led the plunge on Tuesday as the markets endured the second day of red numbers and, citing an “uneven” economic recovery, Federal Reserve Chairman Jerome Powell began two days Congressional testimony.
Powell indicated on Tuesday that the Fed is likely to keep its low interest rate policies in place for the immediate future.
“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Powell said in written testimony to the Senate Banking Committee.
He referenced the slow recovery from the loss of jobs during the pandemic.
“Although there has been much progress in the labor market since the spring, millions of Americans remain out of work,” Powell said.
On Monday, the Nasdaq Composite hit its lowest level since Feb. 1.
Tuesday’s trend was not much different as of late morning, with the Nasdaq off more than 150 points, or 1.1%, while the Dow Jones Industrial Average was down 53 points, .20%.
The S&P 500 had fallen by 0.32%.
Powell’s comments are not in step with the industry experts who predict significant economic growth as the country gradually reopens. That path, however, could be accompanied by a surge in inflation.
Powell will lead the planning for dealing with the reopening of the economy and any inflation that may come as a result of stimulus in place and yet to come.
Tesla, Inc., Amazon, Alphabet (Google), Apple and Microsoft have had a bad week – and it’s only Tuesday.
Tesla shares, trading as high as $795 on Friday, had plunged to $632 by Tuesday morning, recovering to more than $685 by midday. Tesla earlier this month announced a $1.5 billion investment in bitcoin, which has seen a rapid sell-off this week.