Highlights
Stocks slipped Tuesday with big technology shares falling back from Monday's gains and a spike in oil prices pushing up US Treasury yields.
The Dow Jones industrial average eased 0.1 percent, the S&P 500 lost 0.6 percent, and the Nasdaq dropped by 1.0 percent. US Treasury yields rose at the short end and declined at the long end. The dollar was mostly lower. Oil prices rallied on a perceived supply shortfall due to Saudi output cuts.
Disappointing quarterly results from Oracle, including soft cloud computing sales guidance, spurred a wider selloff in cloud computing plays, including Amazon and Microsoft, to weigh on the major averages. Apple had a bad day after holding prices steady on its newly-unveiled iPhones.
The uptick in oil prices fanned inflation worries for a market anticipating the Federal Reserve's policy meeting next week and key inflation and retail sales reports later this week. Technical weakness added to the negatives with the S&P 500 and Nasdaq falling below key moving averages.
Among sectors, worst were information technology, communications services, consumer discretionary, real estate, and consumer staples. Financials, industrials, and energy stocks outperformed.
The Dow Jones industrial average eased 0.1 percent, the S&P 500 lost 0.6 percent, and the Nasdaq dropped by 1.0 percent. US Treasury yields rose at the short end and declined at the long end. The dollar was mostly lower. Oil prices rallied on a perceived supply shortfall due to Saudi output cuts.
Disappointing quarterly results from Oracle, including soft cloud computing sales guidance, spurred a wider selloff in cloud computing plays, including Amazon and Microsoft, to weigh on the major averages. Apple had a bad day after holding prices steady on its newly-unveiled iPhones.
The uptick in oil prices fanned inflation worries for a market anticipating the Federal Reserve's policy meeting next week and key inflation and retail sales reports later this week. Technical weakness added to the negatives with the S&P 500 and Nasdaq falling below key moving averages.
Among sectors, worst were information technology, communications services, consumer discretionary, real estate, and consumer staples. Financials, industrials, and energy stocks outperformed.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
