The S&P 500 fell on Tuesday amid selling in Big Tech and other high-growth stocks, erasing the benchmark’s strong start to the month.
The Dow Jones Industrials nosed ahead 19.8 points to 34,133.03, thanks to strong performance in Dow Inc and Caterpillar.
The broad market slid 28 points to 4,164.66.
The NASDAQ Composite dissolved 281.61 points, or 1.9%, to 13,633.50. Pressure on some of the globe’s largest technology companies sent the tech-heavy index to its worst day since March.
Apple, the largest publicly traded company in the U.S., fell 3.5%. Google-parent Alphabet lost 1.6%, Facebook shed 1.3% and electric car maker Tesla dropped 1.7%. Investors did not spare the market’s chipmakers, with Nvidia dipping 3.3%, and Intel losing 0.6%.
Reasons for the downward pressure varied, but strategists cited a mix of concerns about rising inflation, fears the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax increases in the months ahead.
U.S. equities hit their lows of the day following Treasury Secretary Janet Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating.
Meanwhile, investors also ditched reopening plays with airlines, cruise lines and retailers giving back some of Monday’s gains.
Pfizer shares rose slightly following quarterly results that beat expectations and raising its 2021 guidance. CVS Health shares jumped 4.4% after the pharmacy chain and insurance company also raised its guidance.
United States Steel popped 7.9% after Credit Suisse upgraded the stock to outperform from underperform, saying that the surge in prices for steel made it clear that the industry was in a “super cycle.”
States continued to relax pandemic restrictions amid the vaccine rollout. New York Gov. Andrew Cuomo announced that most capacity restrictions will be lifted across New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month.
Florida Gov. Ron DeSantis signed an executive order on Monday that immediately suspends the state’s remaining health restrictions.
Prices for 10-Year Treasurys inched higher, lowering yields to 1.59% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices moved ahead $1.27 to $65.76 U.S. a barrel.
Gold prices tumbled $13.30 to $1,778.50 U.S. an ounce.