Stocks still down but the Dow revived hopes of a turnaround on Tuesday

After the resumption of selling of shares for most of the days, doe ,Inappropriate, Rebounded and climbed 0.1% or 30 points in the early afternoon.

It may not be much, but the index had fallen over 800 points at its weakest point on Tuesday.

dow component American Express ,AXP,, johnson and johnson ,JNJ, And ibm ,ibm, All posted a strong outlook in their earnings release, leading to a rally in the index.
S&P 500 ,spx, Remains in the red, but for now, avoiding the dreaded correction zone, which is defined as a 10% drop from the most recent peak. In the case of the S&P, that was just three weeks before it took a hit. Record high on January 3, The index was down 0.5% in the early afternoon.
Nasdaq Composite ,computer application,which fell into correction territory last week, trading down 1.1%.
market volatility tracker, CBOE Volatility Index ,much Ado,, or Vicks, also reflects the roller-coaster-nature of the day, and was down 2.2%, having recovered from its earlier double-digit percentage jump. and CNN Business’ fear and greed index Tuesday fell firmly into “fear” mode, as investors worried about the Fed’s policy changes and global politics.
The stock climbed almost unabated in 2021, and some experts believe that the pull-back in the market had made the stock costlier. On Monday, the Dow fell more than 1,000 points to its lowest point, but ended in the green. Last minute reversals just before market close,

“Recent price action suggests that a long-pending equity market correction has finally begun. In our view, this is a healthy long-term growth,” said Steven Ricciutto, US Chief Economist at Mizuho Securities.

For price hunters, the recent selloff could present an opportunity “to start munching on some of the more beaten-down areas of the market,” he said.

what is driving the market

Investors still have a lot to offer.

The Federal Reserve meeting is starting ahead of Wednesday’s policy decision. Although Fed Chairman Jerome Powell hasn’t made secret of the central bank’s plans to roll back the stimulus and raise interest rates this year, it is stressing investors.

In December, the central bank indicated several rate hikes in 2022 and Expectations Three settled on a quarter percentage point increase. But since then, the market has shifted its expectations in the form of four hikes.
Treasury bond yields, which tracks interest rate expectations, ticked higher on Tuesday, with the 10-year bond opening at 1.78% at noon. Last week, the yield was climbed above 1.8% For the first time since the pandemic began, it is indicating that the market is gearing up for a world of rising interest rates.

The Fed’s expected actions come as a massive response to pandemic-era inflation. Economists and investors worry about when prices will rise so much that Americans stop spending — a dire sign for a recovery.

Consumer confidence fell slightly in January, data from The Conference Board showed on Tuesday, but it was still better than economists expected. The US outlook on the current situation has improved, even as short-term growth expectations have declined.

“Inflation has declined for the second month in a row, but remains high after hitting a 13-year high in November 2021,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Concerns about the pandemic increased slightly amid the ongoing boom at Omicron.”

With earnings season in full swing, investors want to hear how much of a production price hike companies can pass on to their consumers.

The cherry on top of the concerns is the situation between Russia and Ukraine. Tensions are rising while investors are trying to figure out how to price in a Possible invasion of Ukraine,