- The Nasdaq Composite lost the most ground Monday among Wall Street's major benchmarks.
- Tech stocks bore the brunt of the 10-year Treasury yield rising to a three-month high of 1.5%.
- Investors pushed into bonds as focus turns again to a possible Fed rate hike in late 2022.
- See more stories on Insider's business page.
US stocks closed mostly in red Monday, with tech names weighed down by a climb in Treasury yields as investors refocused on expectations for the Federal Reserve to begin tapering asset purchases in the coming quarter and raising interest rates next year.
The S&P 500 lost ground and the Nasdaq Composite, the index featuring some of the largest tech companies in the world, fell for a second straight session. The pricey group of tech stocks was hurt as the 10-year Treasury yield surpassed 1.5%, the highest level since late June.
Here's where US indexes stood at 4:00 p.m. on Tuesday:
- S&P 500: 4,443.14, down 0.28%
- Dow Jones Industrial Average: 34,869.37, up 0.21% (71.37 points)
- Nasdaq Composite: 14,969.97, down 0.52%
"US tech dominance has helped drive major outperformance for the Nasdaq over the course of this pandemic, yet we are starting to see that unravel as the Fed moves towards a new tightening cycle," said Joshua Mahony, senior market analyst at IG, in a note Monday. "Concerns over the possibility that tech stocks have been pumped up by easy money brings a potential shift towards pro-cyclical laggard which often rise as yields improve."
Around the markets, Morgan Stanley cut its price target for Amazon to $4,100 as it sees the retailer's plans to hire thousands of people and increase wages putting pressure on its profit.
Canoo and SoFi are among the top 10 stocks Reddit's WallStreetBets forum is focused on now.
Oil prices jumped. West Texas Intermediate crude picked up 1.9% to $75.41 per barrel. Brent oil, oil's international benchmark, rose 1.7% to $79.40.
Gold was up marginally at $1,750.68 per ounce.
Bitcoin fell 0.4% to $43,039.51.