US stocks close lower after new Fed chair’s testimony

Posted on: February 27th, 2018 by ABC News No Comments

iStock/Thinkstock(NEW YORK) — U.S. stocks closed in the red Tuesday after Federal Reserve chairman Jerome Powell hinted at more interest rate increases this year.

The Dow Jones Industrial Average sunk 299.24 (-1.16 percent) to finish the session at 25,410.03.

The Nasdaq slid 91.11 (-1.23 percent) to close at 7,330.35, while the S&P 500 finished trading at 2,744.28, down 35.32 (-1.27 percent) for the day.

Crude oil prices were down about 1.6 percent and under $63 per barrel.

Federal Reserve:  Fed chair Jerome Powell gave his first public testimony before Congress on Tuesday and said his “personal outlook for the economy has strengthened since December.”

The U.S. central bank in December predicted three short-term interest rate increases for 2018, and while Powell did not indicate he would boost that estimate, investors were wary over the likelihood of the Fed lifting rates four times this year.

Winners and Losers:  Shares of Fitbit tumbled 12.27 percent after the company’s sales in the fourth quarter fell to $571 million, lower than the $588 million expected.

A good day for retail stocks– Dillard’s (+16.89 percent) and Macy’s (+3.46 percent) both reported strong earnings last quarter.

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