Feb. 23, 2021
Good evening everyone! Welcome to a new episode of “Stocks Today”, explaining what forces moved the stocks in the U.S. equity market today (Tuesday, February 23, 2021).
Both the S&P 500 and the Dow Jones closed positive, up respectively 0.13% and 0.05% today. The Nasdaq closed down 0.50% instead.
Why did the stock market move today?
Stocks from the tech sector started extremely low today, with a severe sell-off taking place. Fears for inflation and therefore excessively high valuations represented the main drive for the panic seen in the market.
Things calmed down and surprisingly turned around after Federal Reserve Chairman Jerome Powell reassured that inflation is still far away. As stated during his semiannual monetary policy testimony before the Senate Banking Committee, “the economy is a long way from our employment and inflation goals”.
Stock of the day
In the after market, Square reported adjusted EPS of $0.32 against the expected EPS of $0.24 as well as a net revenue of $3.16B in the fourth quarter against estimates of $3.22B.
As a consequence, after falling down 4.33% in the trading day, shares in Square (NYSE: SQ) fell down another 5.67% in after hours.
That’s all for this Tuesday’s stock market update. Stay tuned to receive your daily update!