Inflation Fears Spook Investors

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after inflation fears spook investors. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

US stocks set for a positive open ahead of Powell testimony

Michael Nagle | Bloomberg | Getty Images In the previous trading session, stocks on Wall Street finished on a positive note, with the Dow Jones industrial average almost closing up 400 points Monday, as anxiety surrounding higher interest rates subsided somewhat.

The S&P 500 (SPY) dropped 1.27% today as inflation fears spook investors. All sectors were in the red. Real estate (XLRE) -2.14% and consumer discretionary (XLY) -2.12% led the way down. Consumer staples (XLP), energy (XLE), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each fell at least 1%.

The Dow Jones index retreated 299 points (-1.16%) closing at 25,410. The Nasdaq gave back 91 points (-1.23%) settling at 7,330.

Fed Chair Powell’s testimony in front of Congress spooked investors as he detailed the Fed’s monetary policy and revealed that the central bank could raise rates more than 3 times this year in an effort to fight inflation. “We’ve seen some data that in my case will add some confidence to my view that inflation is moving up to target,” Powell told lawmakers. “We’ve also seen continued strength around the globe. And we’ve seen fiscal policy become more stimulative. So I think each of us is going to be taking the developments since the December meeting.” (Quote taken from above CNBC article) The 10 year bond yield rose 5 basis points to 2.91% during his testimony. The Dow almost lost 300 points on the backs of Disney and Home Depot. The Nasdaq lost 1% thanks to help from Amazon, Apple, Netflix and Google.

Some notable S&P movers…

  • MSFT -1%
  • FB -1%
  • JPM -1%
  • GOOGL -2%
  • XOM -1%
  • HD -1%
  • CMCSA -7%
  • DIS -4%
  • NFLX -1%

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

2/27/18

S&P 500 Sector Graph

Inflation Fears Spook Investors

S&P 500 (SPY)

Inflation Fears Spook Investors

Consumer Discretionary (XLY)

Inflation Fears Spook Investors

Consumer Staples (XLP)

Inflation Fears Spook Investors

Energy (XLE)

Inflation Fears Spook Investors

Financials (XLF)

Inflation Fears Spook Investors

Real Estate (XLRE)

Inflation Fears Spook Investors

Healthcare (XLV)

Inflation Fears Spook Investors

Industrials (XLI)

Inflation Fears Spook Investors

Materials (XLB)

Inflation Fears Spook Investors

Technology (XLK)

Inflation Fears Spook Investors

Utilities (XLU)

Inflation Fears Spook Investors

S&P 500 Sector Heat Map

Inflation Fears Spook Investors

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