NEW YORK CITY, RAW – Wall Street has ended lower, pulled down by Apple and Tesla, while materials stocks have climbed as investors wait for the US Congress to approve another stimulus package.
Following strong gains in the prior session, technology shares dipped on Tuesday in the resumption of a rotation by investors out of stocks that outperformed due to the coronavirus pandemic and into others viewed as likely to do well as the economy recovers.
The S&P 500 materials and consumer staples sector indexes rose.
Yields on the benchmark 10-year Treasury bonds have stabilised after hitting a one-year high last week.
“Part of it is just because technology went up so much last year and if interest rates are on the rise then the value of their future cash flows is diminished,” said Tom Hainlin at US Bank Wealth Management.
The S&P 500 on Monday logged its best day since June as markets cheered approval of a third COVID-19 vaccine and the House of Representatives’ green light for a $US1.9 ($A2.4) trillion virus relief package.
The Senate will start debating President Joe Biden’s relief bill this week when Democrats aim to pass the legislation through a manoeuver known as “reconciliation,” which will allow passage with a simple majority.
Apple dipped and Tesla declined, with the two companies contributing the most to the S&P 500’s loss for the day.
The S&P 500 technology sector index dropped, extending a pullback from late last month after a sell-off in the US bond market sparked fears over highly valued stocks.
Unofficially, the Dow Jones Industrial Average fell 0.46 per cent to end at 31,390.47 points, while the S&P 500 lost 0.81 per cent to 3,870.36.
The Nasdaq Composite dropped 1.69 per cent to 13,358.79.
The Russell 2000 index of smaller companies declined, trimming its gain in 2021 to about 14 per cent, compared with the S&P 500’s rise of under 4 per cent in the same period.
Kohl’s Corp rose after it posted holiday-quarter results beyond market expectations on a boost in online sales and as the company reined in costs.
TV ratings provider Nielsen jumped after it sold its advanced video advertising business to television streaming platform provider Roku.