S&P 500 Wavers, Pressured by Higher Treasury Yields
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 S&P 500 dipped 0.4%. The Dow Jones Industrial Average gained 30 points, or less than 0.1%. The Nasdaq Composite slid 1%.
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. The 10-year Treasury yield was last up nearly six basis points at 4.675%.
“You’re getting a recalibration of inflation expectations and Fed rate expectations. That’s triggered this small sell-off in the equity markets after the earlier enthusiasm,” said Tom Hainlin, senior investment strategist at U.S. Bank Asset Management Group.
Source : CNBC
