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Last News | Tech sell off after Fed announces stable path

Tech stocks rebounded from their worst open in months on Tuesday, after prepared testimony from Federal Reserve Chairman Jerome Powell cooled rate fears that fueled a late February rout.

Many important stocks fell, but modestly. Tesla Inc. had fallen 2% after falling as low as 12% early in the session, while the Nasdaq Composite Index was down 1% after an early 4% drop that put it on track for its worst day since September. The index is down 6% from its February 12 high, as rising U.S. interest rates prompt a broad reassessment of investor growth expectations and on track for sixth straight cut – its longest decline in a year.

Tesla, whose 743% rise last year underlined the tech-driven market rebound following the sale of coronaviruses, is now down for 2021 and has lost a quarter of its value since the electric car maker said on Feb. 8 it had spent $ 1.5 billion. on Bitcoin with the aim of increasing cash returns.

Other investor favorites also recovered after being hit hard early in the session. Moderna Inc., the maker of a major Covid-19 vaccine, fell 7% after falling 13%. Apple Inc. fell 2% and Amazon.com Inc. fell 1%.

Tech companies have become favorites among small investors who have piled up in stock and options trading over the past year, with the Nasdaq rising 44% in 2020. But the scale of the rally sparked concerns that many stocks are overvalued, leaving them vulnerable to sudden meltdowns.

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