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U.S. stocks ended slightly lower on Tuesday, with tech stocks taking a beating after the 10-year Treasury yield hit its highest level in 14 months. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 104.41 points to close at 33,066.96 from a record closing high in the previous session.
The S&P 500 fell 0.3% or 12.54 points to end at 3,958.55 points. Consumer staples and tech sectors were the biggest losers. Consumer Staples Select Sector SPDR (XLP) lost 1.1%, while the Technology Select Sector SPDR (XLK) fell 1%. Seven of the 11 sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq declined 0.1% or 14.25 points to finish at 13,045.39 points after falling as much as 1% at one point.
The fear-gauge CBOE Volatility Index (VIX) was down 5.45% to 19.61. A total of 10.29 billion shares were traded on Tuesday, lower than the last 20-session average of 13.5 billion. Advancers outnumbered decliners on the NYSE by a 1.48-to-1 ratio. On Nasdaq, a 1.47-to-1 ratio favored advancing issues.
10-Year Treasury Yield Hits 14-Month High
The 10-year Treasury yield jumped 6 basis points to trade above 1.77% on early Tuesday. This was also the highest level since January 2020. The rise in the 10-year Treasury yield raised the U.S. dollar and started weighing on stocks.
Although the benchmark rate later ended flat at 1.72%, stocks took a beating as a speedier vaccine rollout and expectations of a faster-than-expected economic recovery raised concerns of rising inflation.
Investors Await Biden’s Infrastructure Plan
Investors also are keeping a close watch on the impact of President Joe Biden’s ambitious infrastructure plan. Biden is likely to announce some of his plans on Wednesday which is expected to cost between $3 trillion and $4 trillion.
Economic Data
On Tuesday, the Consumer Board said that the Consumer Confidence Index soared to a reading of 109.7 in March, its highest level since the COVID-19 outbreak. This sent classic reopening stocks on a rally.
In other economic data released on Tuesday, Case-Shiller home price index for January jumped 11% on a year-over-year basis.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Bigstock
Stock Market News for Mar 31, 2021
U.S. stocks ended slightly lower on Tuesday, with tech stocks taking a beating after the 10-year Treasury yield hit its highest level in 14 months. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 104.41 points to close at 33,066.96 from a record closing high in the previous session.
Tech stocks suffered the most with shares of Apple, Inc. (AAPL - Free Report) and Microsoft Corporation (MSFT - Free Report) declining 1.2% and 1.4%, respectively. Microsoft has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 fell 0.3% or 12.54 points to end at 3,958.55 points. Consumer staples and tech sectors were the biggest losers. Consumer Staples Select Sector SPDR (XLP) lost 1.1%, while the Technology Select Sector SPDR (XLK) fell 1%. Seven of the 11 sectors of the benchmark index closed in the red.
The tech-heavy Nasdaq declined 0.1% or 14.25 points to finish at 13,045.39 points after falling as much as 1% at one point.
The fear-gauge CBOE Volatility Index (VIX) was down 5.45% to 19.61. A total of 10.29 billion shares were traded on Tuesday, lower than the last 20-session average of 13.5 billion. Advancers outnumbered decliners on the NYSE by a 1.48-to-1 ratio. On Nasdaq, a 1.47-to-1 ratio favored advancing issues.
10-Year Treasury Yield Hits 14-Month High
The 10-year Treasury yield jumped 6 basis points to trade above 1.77% on early Tuesday. This was also the highest level since January 2020. The rise in the 10-year Treasury yield raised the U.S. dollar and started weighing on stocks.
Although the benchmark rate later ended flat at 1.72%, stocks took a beating as a speedier vaccine rollout and expectations of a faster-than-expected economic recovery raised concerns of rising inflation.
Investors Await Biden’s Infrastructure Plan
Investors also are keeping a close watch on the impact of President Joe Biden’s ambitious infrastructure plan. Biden is likely to announce some of his plans on Wednesday which is expected to cost between $3 trillion and $4 trillion.
Economic Data
On Tuesday, the Consumer Board said that the Consumer Confidence Index soared to a reading of 109.7 in March, its highest level since the COVID-19 outbreak. This sent classic reopening stocks on a rally.
In other economic data released on Tuesday, Case-Shiller home price index for January jumped 11% on a year-over-year basis.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>