US stocks hovered between gains and losses on Wall Street on Tuesday afternoon trading as investors shifted to a more cautious mood a day after the market hit its most recent high.
Tech stocks slipped after fluctuating earlier in the day. Financials fell as bond yields eased. This has countered the broader gains of companies that depend on continued economic growth to recover.
The S&P 500 Index was up 0.1% at 2:22 p.m. EST, a strike distance from another all-time high. The stocks within the index were almost evenly split between winners and losers. The Dow Jones Industrial Average fell 52 points, or 0.2%, to 33,474 and the Nasdaq rose 0.2%.
Much of the churn within the market is occurring as Wall Street assesses the health and speed of the economic recovery. Investors weighed in concerns about rising inflation as the economy grows, as well as expectations that retailers and other service sector stocks will make solid gains as the world moves past the pandemic and returns to a semblance of normality. The spread increased 3.4%, while Wynn Resorts gained 4.7%.
Many sectors and businesses have been heavily supported by the pandemic, as vaccine distribution helps businesses reopen, while government stimulus measures help consolidate businesses in the meantime. Even when this shift occurs, the technology and other stocks that have benefited from the closings still look fundamentally sound, said Jeff Buchbinder, equity strategist at LPL Financial.
“We see this battle happening here in the markets every day,” he said. “This will generate unsubscribing. “
Bond yields have fallen. The 10-year Treasury yield slipped to 1.65% from 1.72% Monday night. This has helped banks down as they rely on higher yields to charge more lucrative interest on loans. JPMorgan Chase fell 0.9%.
The International Monetary Fund expects global economic growth accelerate this year as vaccine distribution increases and the world rebounds. The 190-country lending agency said it expects the global economy to grow 6% in 2021, down from 5.5% it forecast in January. It would be the fastest expansion of IMF records since 1980.
The United States Department of Labor has reported that job vacancies reached the highest level on record in February, a harbinger of healthy hiring and a sign of hope for those looking for work. The upbeat report follows encouraging reports last week on job growth and improvements in the service sector, which is one of the areas of the economy hardest hit by the pandemic.
Swiss bank Credit Suisse expects $ 4.7 billion loss linked to a default of an American hedge fund. Two senior executives leave the bank. Credit Suisse has also suspended a share buyback program and reduced its dividend. The bank’s U.S.-listed shares, which already fell sharply last week after the first news of the default broke, changed little on Tuesday.
In Europe, the French CAC 40 rose 0.5%, while the German DAX rose 0.7% and the UK FTSE 100 rose 1.3%. Asian markets have been mixed.
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