U.S. stock markets experienced a sharp decline on Tuesday due to profit bookings in the technology sector and concerns over weak economic data. Investors are also awaiting Powell’s Congressional testimony. The Dow Jones Industrial Average dropped 1% to 38,585.19, with 23 out of 30 components ending in negative territory. The Nasdaq Composite fell 1.7% to 15,939.59, while the S&P 500 tanked 1% to 5,078.65. The Technology Select Sector SPDR (XLK) saw a 2.5% decrease.
The fear-gauge CBOE Volatility Index (VIX) was up 1% to 14.46, with 13.22 billion shares traded. Decliners outnumbered advancers on both the NYSE and Nasdaq. The technology sector took a hit, with Apple Inc. seeing a 2.8% drop in stock price following reports of declining iPhone sales in China. Other tech giants like Microsoft Corp. and Intel Corp. also experienced losses.
Fed Chairman Jerome Powell is set to provide monetary policy updates in his testimony before Congress on March 6 and 7. Economic data showed a decrease in services PMI and factory orders for January. The Fed has ruled out a rate cut in the upcoming March FOMC meeting.