Highlights
Stocks edged down Tuesday in quiet trading as the market remained in limbo awaiting clarity on the trade picture. The Dow Jones industrial average eased 0.3 percent, the S&P 500 dipped 0.4 percent, and the Nasdaq was down 0.4 percent. Bond yields rose, the dollar fell and oil prices edged up.
Stocks entered modest correction mode this week after a long stretch of gains going back to April 9 when President Trump suspended much of his reciprocal tariffs. On Tuesday, technology shares saw selling pressure after outperforming to lead the S&P higher over the last six days, with Apple, Meta, Microsoft and Nvidia among notable decliners. Tesla rose after Elon Musk said he was planning to refocus his attention on the automaker. Bond yields rose again to put additional pressure on growth stocks.
Other declining sectors included airlines, building products, travel & leisure, energy, and real estate investment trusts. Best performers included pharma, chain stores, media, waste haulers and utilities.
In macro news, a batch of Federal Reserve speakers did not move markets. All are saying the Fed is on hold awaiting clarity on the impact of tariffs, and that the current mildly restrictive stance is appropriate. Fiscal policy has been in focus with President Trump pressing his conference to approve his tax and spending bill, which has added to worries about the US fiscal position. So far the bond market has been the focus of concern about widening deficits while equities react to movements in yields, which have moved higher lately.
Stocks entered modest correction mode this week after a long stretch of gains going back to April 9 when President Trump suspended much of his reciprocal tariffs. On Tuesday, technology shares saw selling pressure after outperforming to lead the S&P higher over the last six days, with Apple, Meta, Microsoft and Nvidia among notable decliners. Tesla rose after Elon Musk said he was planning to refocus his attention on the automaker. Bond yields rose again to put additional pressure on growth stocks.
Other declining sectors included airlines, building products, travel & leisure, energy, and real estate investment trusts. Best performers included pharma, chain stores, media, waste haulers and utilities.
In macro news, a batch of Federal Reserve speakers did not move markets. All are saying the Fed is on hold awaiting clarity on the impact of tariffs, and that the current mildly restrictive stance is appropriate. Fiscal policy has been in focus with President Trump pressing his conference to approve his tax and spending bill, which has added to worries about the US fiscal position. So far the bond market has been the focus of concern about widening deficits while equities react to movements in yields, which have moved higher lately.
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.
