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Wall Street Opens Lower on Inflation Fears; Nasdaq Down 1.4% By Investing.com

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© Reuters.

By Geoffrey Smith 

Investing.com — U.S. stock markets fell at the opening on Tuesday as fears of inflation continued to push up bond yields, pressuring valuations that have been supported since the start of the pandemic by extraordinary stimulus measures.

By 9:45 AM ET (1345 GMT), the was down 1.4%, near its lowest level in a month, while the was down 0.8% and the was down 100 points, a relatively modest 0.3%. 

Like Monday’s, the Dow’s poor performance is due to weakness in bank, energy, or other ‘value stocks’, which have stronger short-term cash flows that make them more resilient to rising interest rates. 

Pre-released testimony of Federal Reserve Chairman Jerome Powell to Congress at 10:01 ET was a catalyst for market volatility. He acknowledged that inflation inflation has been higher than anticipated and will likely remain elevated for at least a few months.

 

 

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