Stock Bulls Warily Eye Support Lines on Powell’s Hawkish Tone
- Fed chair’s talk of faster tapering dents assets Tuesday
- S&P 500 is dropping toward its 50-day moving average
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Newly hawkish comments from Jerome Powell have sent the S&P 500 tumbling dangerously close to what some analysts consider key technical support levels.
The S&P 500 sank almost 2% to as low as 4,565 Tuesday, after the Federal Reserve Chair weighed an earlier end to tapering asset purchases that could clear the way for a rate hike. The threat from the omicron virus variant and inflation that has lasted longer than any central banker anticipated had already been whipsawing stocks this month, sending a measure of volatility to its highest since January.