Business News: Wall Street benefits as lower bond yields boost tech stocks.
US equities closed slightly lower on Tuesday and the major Wall Street indices were not far off from unchanged after a rally in the previous session as investors continue to try to gauge the path of inflation.
Longer-dated U.S. Treasury bond yields fell for a fourth consecutive day, with the 10-year benchmark yield hitting a new two-week low of 1.557% and helped ease inflation concerns . The yield had risen to 1.776% at the end of March.
Federal Reserve officials continue to downplay mounting price pressures, and Fed Vice President Richard Clarida said the central bank can take steps to cool a jump in inflation, if it occurs, without derailing the economic rebound resulting from the pandemic. coronavirus.
The Dow Jones Industrial Average fell 81.52 points, or 0.24%, to 34,312.46, the S&P 500 lost 8.92 points, or 0.21%, to 4,188.13, and the Nasdaq Composite was dropped 4.00 points, or 0.03%, to 13,657.17.
Energy, down 2.04%, was the weakest sector on the day with Exxon Mobil Corp off 2.26% as the biggest weight on the S&P 500, after sources said BlackRock Inc has supported several hedge fund Engine No 1 candidates to join the energy giant. table.
The real estate sector, up 0.31%, was a positive point, which benefited from the pause in returns. Data on Tuesday showed that sales of new single-family homes in the U.S. fell in April as prices rose due to a low supply of homes, while a separate report showed that U.S. consumer confidence changed little and it’s close to last month’s number which was the highest since February 2020.
Lordstown Motors Corp tumbled 7.45% after the electric vehicle startup said 2021 production of its Endurance truck would be half of previous expectations and it needs additional capital to execute its plans.
Falling issues outpaced those rising on the NYSE by a ratio of 1.53 to 1; on the Nasdaq, a ratio of 1.77 to 1 favored the downturn. The S&P 500 posted 29 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 75 new highs and 51 new lows.