- The Nasdaq index fell more than 2% on Tuesday as investors sold off mega-cap growth stocks on valuation concerns, while keeping a close eye on Federal Reserve Chairman Jerome Powell’s testimony in Congress.
“There’s definitely an assumption that inflation has crept and bled through and we are starting to see some impact of that assumption in the growth style of investing,” said Keith Buchanan, portfolio manager at GlobAlt in Atlanta. Seven of the 11 major S&P 500 sectors were trading in the red, with consumer discretionary, technology and communication services among the top three decliners.
Value stocks, which are poised to benefit from an economic rebound, have outperformed growth shares in February. At 10:18 a.m. ET the Dow Jones Industrial Average was down 184.17 points, or 0.58%, at 31,337.52, the S&P 500 was down 40.54 points, or 1.05%, at 3,835.96, and the Nasdaq Composite was down 329.36 points, or 2.43%, at 13,203.69.