Highlights
Rising bond yields fueled a broad selloff in stocks Tuesday as the market suffered from inflation worries and heavy fixed income supply.
The Dow lost 0.4 percent, the S&P 500 fell 1.1 percent and the Nasdaq dropped 1.9 percent. US Treasury yields, the dollar, and oil prices all rose. Losses accelerated after the S&P 500 broke below support at 5,950.
Growth stocks including big technology shares saw notable weakness as they gave back Monday's gains. These shares were hit by rising bond yields and inflation worries after a much higher than expected prices subindex in an overall strong ISM services report. Bonds also suffered from higher than expected job openings in the JOLTS report. Market rates have risen this week as bond market has struggled to absorb a heavy slate of new corporate and US Treasury bond issues.
Among megacaps, notable weakness in Apple, Microsoft and Nvidia hit technology shares while losses in Amazon and Tesla depressed consumer discretionary. The only sectors to show gains were energy and health care.
The Dow lost 0.4 percent, the S&P 500 fell 1.1 percent and the Nasdaq dropped 1.9 percent. US Treasury yields, the dollar, and oil prices all rose. Losses accelerated after the S&P 500 broke below support at 5,950.
Growth stocks including big technology shares saw notable weakness as they gave back Monday's gains. These shares were hit by rising bond yields and inflation worries after a much higher than expected prices subindex in an overall strong ISM services report. Bonds also suffered from higher than expected job openings in the JOLTS report. Market rates have risen this week as bond market has struggled to absorb a heavy slate of new corporate and US Treasury bond issues.
Among megacaps, notable weakness in Apple, Microsoft and Nvidia hit technology shares while losses in Amazon and Tesla depressed consumer discretionary. The only sectors to show gains were energy and health care.
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.
