Stocks fell on Tuesday after Federal Reserve Governor Lael Brainard indicated the central bank may act quicker than expected to trim its balance sheet.
 | TUE, APR 05, 2022 | | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 175.06 | -3.38 | -1.89% | | INTC | 48.13 | -1.07 | -2.17% | | VZ | 52.78 | +0.32 | +0.61% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | TWTR | 50.98 | +1.01 | +2.02% | | F | 15.82 | -0.84 | -5.04% | | AMD | 106.82 | -3.71 | -3.36% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 106.82 | -3.71 | -3.36% | | AAPL | 175.06 | -3.38 | -1.89% | | NVDA | 259.31 | -14.29 | -5.22% | |
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| Stocks fell on Tuesday after Federal Reserve Governor Lael Brainard indicated the central bank may act quicker than expected to trim its balance sheet and slow rising inflation. "Currently, inflation is much too high and is subject to upside risks," she said at a Minneapolis Fed discussion. "The [Federal Open Market] Committee is prepared to take stronger action if indicators of inflation and inflation expectations indicate that such action is warranted." The comments added to the growing fear that a recession could be around the corner. The Nasdaq Composite fell 2.26%, and the S&P 500 lost 1.26% after two straight days of gains. The Dow Jones Industrial Average dropped 0.8%, falling just over 280 points. "The biggest things this morning wasn't the comments," said Jim Paulsen, chief investment strategist at The Leuthold Group. "I think it's the fact that you have another traditionally dovish Fed member leading the call about how fast they're going to reduce the balance sheet." | Following the remarks, the 10-year Treasury yield hit its highest level since May 2019 and reversed an earlier inversion with its 2-year counterpart. "That's to me an important valuation indicator and probably the reason why the equity markets are off as much as they are," said Cresset Capital's Jack Ablin. Chipmakers were among the notable decliners on Tuesday with Nvidia falling 5.2%, while the health-care, utilities and consumer staples sectors ended the day in positive territory. UnitedHealth Group and Procter & Gamble posted gains. The rise in utility stocks could signal that investors are looking for stability or a "safe-haven" in the current market, Ablin said. Oil prices slipped, as West Texas Intermediate settled 1.28% lower at $101.96. Brent crude futures settled at $106.64, declining 0.83%. On the geopolitical front, Ukrainian President Volodymyr Zelenskyy called for a Nuremberg-style tribunal to look into Russian war crimes during a speech before the United Nations Security Council. Investors are looking ahead to further guidance from the Fed's meeting minutes, which are slated to come out Wednesday. | | | |
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