The S&P 500 traded lower on Tuesday, giving up an earlier gain, as fresh economic data led to a spike in Treasury yields and raised questions about the possibility of Federal Reserve rate cuts later this year.
The Dow Jones Industrials gained 39.53 points to 42,746.09.
The much-broader index backpedaled 22.3 points to 5,953.08.
The NASDAQ Composite tumbled 207.02 points, or 1%, to 19,659.69.
Stocks on Tuesday were also dragged by a dip in shares of Nvidia, which fell more than 4.5% after hitting a record. The company on Monday had unveiled new chips for desktop and laptop PCs that use the same Blackwell architecture. Tesla slipped nearly 3% after Bank of America downgraded the electric vehicle maker given its high valuation and risks associated with its strategy.
Other megacap tech stocks slipped into the red amid the market’s broader decline. Meta Platforms and Amazon shed roughly 2.4% and 1.6%, respectively.
Data released on Tuesday by the Institute for Supply Management reflected faster-than-expected growth in the U.S. services sector in December, adding to concerns about stickier inflation.
Prices for the 10-year Treasury dropped sharply, raising yields to 4.69% from Monday’s 4.61 %. Treasury prices and yields move in opposite directions.
Oil prices surged 74 cents to $74.30 U.S. a barrel.
Prices for gold revived $18.50 an ounce to $2,665.60 U.S.
