Wall Street had another volatile day of on Tuesday, falling nearly 2 percent before recovering later in the session. Technology stocks continued to struggle.
Stocks have dropped recently as a rise in U.S. inflation expectations and bond yields has raised concerns that the Federal Reserve will tighten its monetary policy sooner than expected, upending the easy-money policies that have helped bolster stocks during the pandemic.
The central bank’s policymakers have said they would look past a short-term rise inflation and keep supporting the economy, a message that Jerome H. Powell, the central bank chair, repeated in testimony before the Senate Banking Committee on Tuesday.
The S&P 500 ended slightly higher on Tuesday, breaking a weeklong losing streak. The technology-heavy Nasdaq composite fell half a percent.
Tesla shares dropped as much as 9 percent before recovering some ground, after falling about 9 percent on Monday as Bitcoin prices also tumbled. Over the weekend, Elon Musk tweeted that prices of Bitcoin and Ether, the two largest cryptocurrencies, “do seem high.” A few weeks ago, the electric carmaker said it bought $1.5 billion in Bitcoin, sending prices of both soaring.
The Stoxx 600 Europe fell 0.4 percent.
The unemployment rate in Britain rose to 5.1 percent for the three months ending in December, 1.4 percentage points higher than it was a year earlier, official statistics showed on Tuesday. Job losses have fallen particularly hard on young people: The number of employees on company payrolls has declined by 726,000 in the past year, nearly three-fifths of these workers were under 25.
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