Tech stocks rebounded from an early-morning rout Tuesday after Federal Reserve Chairman Jerome Powell signaled that a central-bank interest rate increase remains far off in the future, easing some concern over rising rates.
The S&P 500 was down 0.8%, lower for a sixth consecutive session as investors recalibrate their expectations for stocks as bond yields climb. The broad stock market index earlier was down as much as 1.8%.
The index, along with the Dow Jones Industrial Average and the Nasdaq Composite, recouped some of its losses after Mr. Powell said inflation remained soft, tamping down fears of a policy shift by the central bank. Earlier, the Nasdaq dropped as much as 4% and investor favorites such as Tesla and Moderna dropped by double digits, part of what portfolio managers said was a rotation out of the high-growth favorites of the past year and into more economically sensitive stocks such as banks and manufacturers.
“The economy is a long way from our employment and inflation goals,” Mr. Powell said in prepared remarks for a hearing of the Senate Banking Committee Tuesday morning.
Still, the six-day decline marks the S&P 500’s longest losing streak in a year. The Nasdaq was off 2% in recent trading, while the Dow Industrials were off by 118 points, or 0.4%, to 31404.
