US Stocks fall on profit booking, bubble fears

March 03,2021

The US stocks tumbled on Tuesday, 02 March 2021, weighing the S&P 500, the Dow index, and the broader Nasdaq into the negative terrain, as profit booking triggered after strong rally in the previous session. Meanwhile, selloff pressure mounted on concerns that widespread jump in inflationary pressures could shake confidence by undercutting pledges from central banks to keep monetary policy loose.

At the close of trade, the Dow Jones Industrial Average index declined 143.99 points, or 0.46%, to 31,391.52. The S&P500 index dropped 31.53 points, or 0.81%, to 3,870.29. The tech-heavy Nasdaq Composite Index fell 230.04 points, or 1.69%, to 13,358.79.

Oil service stocks showed a substantial move to the downside on the day, amid a notable decrease by the price of crude oil, with crude for April delivery falling $0.89 to $59.75 a barrel.

Gold stocks were among the few groups to buck the downtrend, as the price of gold for April delivery climbed $10.60 to $1,733.60 an ounce, snapping a five-day losing streak.

Shares of Rocket Companies soared 71.2% after a news report that the stock could be a Reddit target for its high short-interest.

Retailer Kohl's shares rose 0.6% after it posted holiday quarter results above market expectations.

Shares of TV ratings provider Nielsen jumped 7.6% after it sold its advanced video advertising business to Roku.

Longer-dated US treasury yields fell on Tuesday. US Federal Reserve Governor Lael Brainard said it will take “some time” to meet the conditions laid out by the US central bank for reducing the pace of its bond purchases. US 2-year yields were steady near 0.125%. And US 10-year yields lost 4 points to near 1.41%.

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