NDZ/Star Max/IPx/AP
The market decline came after the S&P 500 index posted its best first quarter since 2019.
new york
CNN
—
Stocks fell on Tuesday morning as investors continued to worry that the Federal Reserve may cut interest rates later than expected.
The Dow Jones Industrial Average fell 467 points, or 1.2%, after dropping more than 500 points at its low on Tuesday. This means that the blue-chip index at one point fell about 800 points in the first two days of the second quarter. On Tuesday morning, the S&P 500 was down 1% and the Nasdaq Composite was down 1.4%.
Market decline follows S&P 500 Recorded best first quarter The S&P 500 index rose 10.2% in the first three months of this year, while the Dow and Nasdaq rose 5.6% and 9.1%, respectively.
The drop was due to the Federal Reserve’s recommended inflation measure, the Personal Consumption Expenditure Price Index. 2.5% increase over 12 months It ended in February at a faster clip than the January price increase.
Federal Reserve Chairman Jerome Powell warned Friday: A rate cut is unlikely to be imminent.
View this interactive content on CNN.com
“There’s no need to rush to cut rates,” he said at an event hosted by the San Francisco Fed.
This causes bond yields to rise. The 10-year Treasury yield hit its highest level this year on Tuesday and was last trading at 4.36%.
Traders have lowered their expectations for a rate cut in June to about 62% from more than 70% the previous week, according to the CME FedWatch tool.
Investors are keeping an eye on the March employment report, which will be released Friday morning. Economists polled by FactSet expect payrolls to rise by a seasonally adjusted total of 202,500 jobs in March, down from February’s 275,000 gain.
Health insurers elsewhere were also hurt after the Biden administration announced on Monday final payment rates for Medicare Advantage and Medicare Part D drug coverage for 2025. Federal payments for Medicare Advantage plans are expected to increase by an average of 3.7% or more. The total payout is $16 billion, depending on a variety of factors.
Humana stock fell 14.7%, CVS Health stock fell 9.1% and UnitedHealth Group stock fell 7.6%.
Tesla stock falls 5.3% The electric vehicle maker’s announcement on Tuesday came after it posted its first annual sales decline since 2020 as it continues to battle increasing competition.
This is a developing story and will be updated.
