US STOCKS SNAPSHOT-Dow, S&P 500 open lower ahead of Powell comments

BY Reuters | ECONOMIC | 02/07/23 09:40 AM EST

Feb 7 (Reuters) - The Dow and the S&P 500 opened lower on Tuesday as investors await Federal Reserve Chair Jerome Powell's remarks for further clues on how long the U.S. central bank will keep interest rates higher.

The Dow Jones Industrial Average fell 121.24 points, or 0.36%, at the open to 33,769.78. The S&P 500 opened lower by 5.73 points, or 0.14%, at 4,105.35, while the Nasdaq Composite gained 3.80 points, or 0.03%, to 11,891.25 at the opening bell. (Reporting by Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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