U.S. stocks tumbled Tuesday, with the S&P 500 index SPX skidding below a key resistance level, as Federal Reserve Chairman Jerome Powell spooked investors with talk of the potential need for higher interest rates to combat stubbornly elevated levels of inflation.
Fed Chair Powell told members Congress that strong economic data could trigger the need for higher interest rates than previously anticipated, while also leaving the door open for a bigger 50 basis point increase to the fed-funds rate in March. The last time the index fell below its 50-day moving average was March 2, according to Dow Jones Market data. Stocks still managed to end last week higher, but the main three indexes were on pace for weekly declinces of 1.4%-1.5% through Tuesday, according to FactSet.