Dow reverses a 360-point loss and ends day higher after Powell eases inflation fears, European markets close lower after a choppy session as tech stocks lag 
The Dow Jones Industrial Average bounced back from steep losses and closed the session in the green on Tuesday after Federal Reserve Chair Jerome Powell relieved some of the concerns about higher interest rates and inflation. The blue-chip Dow wiped out a 360-point loss and closed 15.66 points higher, or 0.1%, at 31,537.35. The S&P 500 also reversed a 1.8% loss and ended the day 0.1% higher at 3,881.37.The Nasdaq Composite slipped 0.5% to 13,465.20 after dropping as much as 3.9% earlier. At its session low, the tech-heavy benchmark fell below its 50-day moving average, a key technical indicator, for the first time since Nov. 3 on an intraday basis. 
The intraday turnaround came after Powell said in his testimony to Congress that inflation is still “soft” and the economic outlook is still “highly uncertain,” easing fears of a policy change by the central bank. 

European stocks closed lower on Tuesday after a choppy day’s trade, with tech stocks following their global counterparts lower on fears over rising bond yields. The pan-European Stoxx 600 ended the session down by 0.4%, recovering some of its earlier losses. The tech sector shed 1.8% to lead losses while retailers edged about 0.9% higher. 
In terms of earnings, HSBC reported full-year earnings for 2020 that beat expectations, and announced a dividend payout for the first time since the Covid-19 pandemic. Shares of the bank were slightly lower by the close. 
On the data front, euro zone inflation rose 0.2% month-on-month in January, Eurostat confirmed on Tuesday, breaking from a months-long trend of falling prices. Toward the bottom of the European blue chip index, German cooking appliance manufacturer Rational fell 9.6% after issuing a weaker-than-expected forecast. 
Source: CNBC