New York Stock Exchange falls on mixed business results

The New York Stock Exchange reeled sharply on Thursday and the S&P 500 again narrowly avoided confirmation of a correction at the end of a session that saw investors digest positive economic numbers, mixed corporate results, geopolitical tension and the prospect of a Tougher Federal Reserve.

All three major stock indices on the New York Stock Exchange have been rocked by uncertainty in recent days, marked by wide fluctuations and heightened volatility.

Small-cap stocks have been hit harder and the Russell 2000 Index is now more than 20% below its all-time high on Nov. 8, officially confirming that it has been in a bear market ever since.

"This is a schizophrenic market," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. "There are those who believe that everything negative is discounted and there are others who believe that the worst is yet to come (...) It is a period of great uncertainty, it has been like this all month".

New York Stock Exchange, attentive to US economic growth

Among a series of economic data released Thursday, the Commerce Department's fourth-quarter GDP preview shows the US economy grew in 2021 at its fastest pace in nearly four decades.

The New York Stock Exchange swayed after Wednesday's release of the Fed's statement, which left key interest rates near zero, as its chairman, Jerome Powell, appeared to raise the possibility of more rate hikes than expected this year, beginning in March.

The fed funds futures market is now forecasting nearly five rate hikes this year following Powell's remarks.

Geopolitical tension has eased, even as Russia continues to build up troops on the Ukrainian border, as diplomats scramble to avoid conflict in the region.

According to preliminary data on the New York Stock Exchange , the S&P 500 lost 23.81 points, or 0.55%, to 4,326.12 points, while the Nasdaq fell 192.36 points, or 1.42%, to 13,349.76. The Dow Jones Industrial Average fell 13.31 points, or 0.04%, to 34,154.78.