Stock market slides. S&P 500 flirts with correction. Eyes on Fed projections and decision
U.S. stocks closed lower, with the broad S&P 500 struggling to remain less than 10% off its record high to stay out of correction territory while the tech-heavy Nasdaq deepened its correction, which began March 6.
Electric vehicle giant Tesla weighed on these indexes again, shedding 5.34% after RBC cut its price goal for the shares because of rising competition in the EV space. Tesla shares have lost more than a third of their value in the past month.
The S&P 500 closed down 1.07%, or 60.46 points, to 5,614.66; the blue-chip Dow dropped 0.62%, or 260.32 points, to 41,581.31 and the Nasdaq lost 1.71%, or 304.55 points, to 17,504.12. All three major indexes are down this year. The benchmark 10-year Treasury yield fell to 4.285%.
Gold prices jumped above $3,000 per ounce to a 14th record high this year on safety purchases as Mideast tensions flared. Israeli air strikes pounded Gaza overnight, ending a two-month ceasefire with Hamas.
Fed on tap
Back-and-forth tariff talk has overtaken airwaves lately and whipsawed stocks, but on Wednesday, investors will likely turn their attention to the results of the Federal Reserve's policy meeting.
Almost no one expects the Fed to resume cutting interest rates, but everyone will be interested in how the Fed sizes up the economy and inflation in coming months and years, especially if President Donald Trump enacts his aggressive tariff plan. Along with its policy statement, the Fed will release its economic projections for inflation, economic growth and the labor market on Wednesday afternoon.
Corporate news
- Google agreed to buy Wiz, the New York-based cloud security startup, for $32 billion in an all-cash deal. Shares of Alphabet, Google's parent, slipped 2.2%.
- Eastman Kodak topped analysts' earnings estimates in the final three months of the year. Shares lost 6.45%.
- Hallador Energy missed analysts' revenue forecasts in the final quarter of last year. The company's stock added 4.09%.
Cryptocurrency
The cryptocurrency market continues to waver along with stocks as investors turn cautious on risky assets.
Bitcoin was last down 2.31% at $82,132.13 but still above the key $80,000 level.
This story has been updated with new information.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.