U.S. stocks fell on Tuesday led by technology names, as the market gave back some of the strong gains from the previous session.
The S&P 500 slid 0.6% after the broad equity benchmark rallied more than 2% Monday for its best day since June. The Dow Jones Industrial Average dipped 30 points, and the tech-heavy Nasdaq Composite dipped 0.8% as Apple and Microsoft fell about 1% each.
Tech and real estate were the two worst-performing sectors, falling more than 1% each. Slight gains in materials and consumer staples provided the broader market with some cushion.
"Markets may be trapped in a tug-of-war between what they expect to happen and pandemic-fueled insecurities which are compounded by other, harder to quantify, market impulse," Chris Hussey, a managing director at Goldman Sachs, said in a note. "On days like today, with no news and little macro to help investors keep the faith, we see 'what ifs' emerge — sideways trading, across all sectors, coupled by a pull back in rates."
The 10-year Treasury yield, a point of focus lately for equity investors, dipped to 1.41%. The benchmark rate appeared to be stabilizing this week after surging to a high of 1.6% last week, which eased some of the fears about higher borrowing costs and inflation.
Still, some investors believe it's inevitable that yields will trend higher this year amid an economic recovery and potentially more fiscal stimulus, which could shrink stock multiples.
"10yr yields aren't (yet) at the level where investors are wholesale selling out of stocks, but the recent increase has brought the PE expansion process to an end," Adam Crisafulli, founder of Vital Knowledge, said in a note.
Meanwhile, others think the jump in yields reflect improving economic growth and rising earnings forecasts and stocks should be able to absorb higher interest rates in the long run if it rises at a reasonable pace.
President Joe Biden said Tuesday that Merck will help make Johnson & Johnson's single shot Covid vaccine as the country tries to ramp up supply.
Economically sensitive cyclical sectors continued to outperform the broader market amid optimism about vaccines and economic resurgence. Energy and financials have risen 28% and 12%, respectively, year to date.
U.S. equities began March on a strong note on Monday with the S&P 500 up 2.4%, the Dow Jones Industrial Average adding nearly 2% and the tech-heavy Nasdaq jumping just over 3% after shedding 4.9% last week. Both the Dow and the Nasdaq clinched their best trading day since November as yields
Shares of Target reversed early gains to trade more than 4% lower despite the company reporting booming sales. The retailer declined to provide a forecast for 2021.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
"back" - Google News
March 02, 2021 at 06:02AM
https://ift.tt/3dYo7wP
S&P 500 pulls back slightly after notching best day since June - CNBC
"back" - Google News
https://ift.tt/2QNOfxc
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "S&P 500 pulls back slightly after notching best day since June - CNBC"
Post a Comment