S&P 500 closes lower as Powell signals higher for longer rates By Investing.com

Investing.com — The S&P 500 closed decrease Tuesday, and traders needed to take care of wild swings after Federal Reserve Jerome Powell signaled the necessity for charges to stay increased for longer following current inflation information that shocked to the upside.  

At 15:00 ET (20:00 GMT), the was up 63 factors, or 0.2%, whereas the  fell 0.2% and fell 0.1%.

Treasury yields increased as Powell indicators increased for longer charges

“The current information have clearly not given us higher confidence,” to think about beginning the speed minimize cycle, as a substitute the information “point out that it’s prone to take longer than anticipated to realize that confidence.”

The Fed has beforehand flagged the necessity for higher confidence, led by incoming financial information, that inflation is on sustainable path decrease to start slicing charges. 

The remarks additional dented investor hopes on sooner charge cuts, pushing Treasury yields increased, with the yield on the 2-year Treasury topping 5% for the primary time since November. 

Unitedhealth, Morgan Stanley shine on earnings stage, Financial institution of America, Johnson & Johnson falters

UnitedHealth Group (NYSE:), a serious Dow element, jumped 5% after the well being insurer maintained its 2024 forecast even because it disclosed a possible hit of as much as $1.6 billion this 12 months associated to an information breach at its Change Healthcare (NASDAQ:) unit, in its first full public disclosure of the monetary affect of the cyberattack. The corporate additionally reported first-quarter income that topped Wall Road estimates.   

Financial institution of America and Morgan Stanley (NYSE:) continued the final wave of main financial institution earnings, but it surely was the latter that delivered a spectacular efficiency, underpinned in its funding banking and gross sales and buying and selling enterprise. Financial institution of America Corp (NYSE:) reported quarterly outcomes that beat analysts estimates, however the inventory fell almost 4% amid considerations about its valuation given its current run up. 

Given the share worth “outperformance over the previous roughly six months, we not see adequate upside to advocate the shares,” HSBC stated in a analysis observe Tuesday, flagging numerous dangers together with deposit value stress and deposit outflows.

Johnson & Johnson (NYSE:) inventory slipped about 2% after the healthcare big reported disappointing first-quarter income numbers as gross sales from its blockbuster psoriasis drug Stelara fell in need of expectations.

Tesla market cap dips beneath $500B as bears strengthen grip

Tesla Inc (NASDAQ:) fell greater than 2%, taking its market cap beneath $500B, because the bearish bets on the corporate navigates a interval of waning demand that has pressured it to announce cuts of greater than 10%. Additional souring the sentiment on the inventory, the electrical car maker delayed cybertruck deliveries in current days, the Wall Road Journal reported Tuesday, citing patrons. 

Stay Nation Leisure Inc (NYSE:), in the meantime, fell greater than 7% after the Wall Road Journal reported that the U.S. Division of Justice is ready to file an antitrust lawsuit towards the live performance promoter alleging that the corporate used its market dominance to hurt competitors for dwell occasions. 

(Peter Nurse, Ambar Warrick contributed to this text.)