WDO:CC - Higher Rates Make Investors Nervous Indexes Slip
The NASDAQ Composite fell Tuesday as an uptick in rates put pressure on the tech-heavy index.
The Dow Jones Industrials removed 37.83 points to 32,394.25.
The S&P 500 faded 6.26 points to 3,971.27.
As for the NASDAQ, it finished the day down 52.76 points to 11,716.08.
Bond yields rose, with the rate on the two-year U.S. Treasury note rising back above 4%, putting pressure on stocks and tech names in particular. Rising rates make future profits, like those promised by growth companies, less attractive.
However, bank stocks turned negative on Wednesday following a contentious hearing before the Senate Banking Committee. Three top regulators each said they favor more stringent rules for banks with more than $100 billion in assets. Regional banks fell 1% in afternoon trading.
A slew of positive news reports helped lift sentiment on Wall Street Monday, including First Citizens BancShares' agreement to buy large parts of Silicon Valley Bank. Further, various news outlets reported that deposit flows out of small institutions and into banking behemoths have slowed.
Prices for the 10-year Treasury dropped a bit, raising yields to 3.56% from Monday's 3.54%. Treasury prices and yields move in opposite directions.
Oil prices added 62 cents to $73.43 U.S. a barrel.
Gold prices gathered $21.70 to $1,975.50 U.S. an ounce.