Stocks stage comeback | Powell not worried about inflation | Cathie Wood's funds take hit

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.

VIEW IN BROWSER | SUBSCRIBE TUE, FEB 23, 2021 EVENING BRIEF AS OF TUE, FEB 23, 2021 • 05:15 ET DJIA 31537.35 +0.05% +15.66 S&P 500 3881.37 +0.13% +4.87 NASDAQ 13465.20 -0.50% -67.85   Most Active DOW NAME LAST CHG %CHG AAPL 125.86 -0.14 -0.11% MSFT 233.27 -1.24 -0.53% INTC 61.12 +0.41 +0.68% S&P 500 NAME LAST CHG %CHG AAPL 125.86 -0.14 -0.11% CCL 26.46 +0.49 +1.89% AAL 20.66 +0.22 +1.08% NASDAQ NAME LAST CHG %CHG AAPL 125.86 -0.14 -0.11% TSLA 698.84 -15.66 -2.19% AMD 84.74 -0.63 -0.74%   EDITOR'S NOTE The big sell-off in technology stocks continued for most of the day Tuesday as investors dumped growth high-flyers in the face of rising bond yields.   The Nasdaq Composite shed as much as 3.9%. The tech-heavy benchmark also fell below its 50-day moving average for first time since Nov. 3 on an intraday basis.   One of the biggest victims of the tech pullback this week is widely followed Wall Street investor Cathie Wood, whose funds are highly concentrated in high-growth companies. Tesla, Palantir, Roku, Square, PayPal, Spotify and Shopify are all top holdings in Wood's flagship Ark Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW), and these stocks were some of the biggest losers Tuesday at one point.   Fast forward to the final hour of trading and tech stocks rallied off their lows. Apple even turned green at one point. Tesla finished down just 2%.    The Dow finished 15 points higher, making up a 360-point loss. The intraday turnaround came after Federal Reserve Chairman Jerome 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.   Still the tech trade appears to be on shaky ground. Tech's historically high valuations become less justifiable with interest rates on the rise, while investors rushed to rotate into cyclicals to ride the economic rebound. Wood knows all too well that higher interest rates would pose a threat to her growth-focused portfolio.   "I do believe that if the [interest] rate were to take a sharp turn up that we would, we would see a valuation reset, and our portfolios would be prime candidates for that valuation reset," she said in an interview with CNBC last week. Yun Li | CNBC Markets and Investing Reporter @YunLi626 TOP NEWS  Dow reverses a 360-point loss and ends day higher after Powell eases inflation fears Powell says inflation is still 'soft' and the Fed is committed to current policy Cathie Wood's funds take big morning hit before rebounding as the tech trade stumbles Tesla drops as much as 13%, turns negative for the year With market shaky, here are some low vol stocks with hefty dividends that analysts like AT&T nears deal with TPG to sell large minority stake in DirecTV, U-verse at $15 billion valuation High-profile SPAC craters after announcing plan to merge with electric car company Lucid Apple shareholders approve big stock payout for Tim Cook; dividend increase coming Square buys $170 million worth of bitcoin Tiger Woods in surgery after suffering leg injuries in major rollover car crash   TOP VIDEO How these investors are measuring risk in their portfolios right now   CNBC PRO Reddit posts are driving Tesla shares more than fundamentals, Barclays study finds   SPECIAL REPORTS Here's what investors should know about rocket builder Astra as it prepares to go public Your eligibility for a $1,400 stimulus check is based off your adjusted gross income—here's how to calculate it   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS