Major stock averages fell more than 1.5% on Tuesday, reversing Monday's rebound, as Omicron variant concerns reignited following comments from Federal Reserve Chairman Jerome Powell before the Senate Banking Committee. Powell told lawmakers that the central bank plans to discuss accelerating its bond-buying taper in its December policy meeting
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Powell signals the central bank will speed up its bond tapering in wake of inflation pressures:
Stocks were pressured on Tuesday after Fed Chair Powell told the Senate Banking Committee in a testimony that the central bank may speed up its previously announced tapering process to end sooner than prior estimates due to rising inflationary pressures.
"At this point the economy is very strong and inflation pressures are high, and it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases, which we announced at the November meeting, perhaps a few months sooner," Powell said. "I expect we will discuss that at our upcoming meeting."
The comments came as some market participants had expected the Fed to become more accommodative to support the economy with the new threat of the Omicron variant.
Consumer confidence slips by a greater-than-expected margin in November:
Consumer confidence fell by a greater-than-expected margin in November compared to October, according to the Conference Board's latest print published Tuesday. The headline confidence index declined to 109.5 in November, down from October's downwardly revised print of 111.6.
"Expectations about short-term growth prospects ticked up, but job and income prospects ticked down. Concerns about rising prices--and, to a lesser degree, the Delta variant--were the primary drivers of the slight decline in confidence," Lynn Granco, senior director of economic indicators at the Conference Board, said in a press statement. "Meanwhile, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months decreased."
"The Conference Board expects this to be a good holiday season for retailers and confidence levels suggest the economic expansion will continue into early 2022," Franco added. "However, both confidence and spending will likely face headwinds from rising prices and a potential resurgence of COVID-19 in the coming months."
Here's how market benchmarks started trading soon after opening bell:
S&P 500 Index: -0.70% or -32.56 points to 4,622.71
Dow Jones Industrial Average: -0.78% or -275.17 points to 34,860.77
Nasdaq Composite Index: -0.38% or -60.25 points to 15,723.28
