Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Nasdaq 100, S&P 500 Fall as Markets Digest Powell & Yellen Testimony, Gamestop Earnings

Nasdaq 100, S&P 500 Fall as Markets Digest Powell & Yellen Testimony, Gamestop Earnings

Brendan Fagan, Contributor
What's on this page

US Equities Talking Points:

  • Markets fell as Fed Chair Powell and Treasury Secretary Yellen testified in front of the House
  • Rising cases and botched vaccine rollouts in Europe spook investors, US crude declined by 6%
  • GameStop missed on both the top line and bottom line, in the first earnings report since the “squeeze”

GameStop reported disappointing Q4 earnings after the bell on Tuesday, in the first earnings report since the infamous “short-squeeze” that dominated markets earlier this year. GameStop reported adj. EPS of $1.34 vs estimates of $1.43. Revenues totaled $2.12 billion against estimates of $2.24 billion. In immediate after-hours trade, GameStop shares rose by 7%.

GME Chart

GameStop Chart

Chart created with TradingView.

Despite the focus on the earnings release, the speculative mania that gripped the markets in early 2021 appears to have dissipated. Many thought that another round of stimulus checks, which are being sent out right now, may ignite another round of speculative trading in heavily shorted stocks. So far, this has not come to fruition. Markets have instead churned under the surface and gyrated near all-time highs. It seems for now the speculative mania which contributed to broader-market volatility has slowly slipped into the shadows, allowing for natural market forces to reestablish control."

For more on the recent speculative wave, read Christopher Vecchio, CFA ‘s piece here.

Equities Forecast
Equities Forecast
Recommended by Brendan Fagan
Get Your Free Equities Forecast
Get My Guide

Powell, Yellen Testimony

Investors cast one eye away from their screens on Tuesday as both Fed Chair Jerome Powell and Secretary of the Treasury Janey Yellen testified in front of the House Financial Services Committee. Chair Powell noted that while there have been recent upticks in employment and inflation measures, policy must remain accommodative for now.

Federal Reserve Balance Sheet

Courtesy of FRED

Recent stimulus, Powell noted, is unlikely to fuel “out of control” longer-term inflation. When pressed on tapering asset purchases, Powell kept his cards close to his chest and stated that markets will be told “well ahead of time.”

US 500 Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -13% 10% 0%
Weekly -7% 5% 0%
What does it mean for price action?
Get My Guide

Secretary Yellen fielded more politically charged questions, focusing on the Biden Administration’s vision for near-term fiscal policy. Yellen commented that President Biden, once the pandemic is over, will look to make long-term investments in the economy to make it “more productive.” She continued on to say that those initiatives will be partially funded through tax hikes, saying that the corporate tax rate may return to 28%.

Chair Powell and Secretary Yellen are slated to testify together again tomorrow in front of the Senate Banking Committee.

--- Written by Brendan Fagan, Intern for DailyFX

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.