Stocks fell Tuesday as strong economic data raised questions about the possibility of Federal Reserve rate cuts later this year, leading to a spike in Treasury yields. Declines across major tech stocks also dragged the market lower.
The Dow Jones Industrials discarded 178.2 points to 42,528.36.
The much-broader index backpedaled 66.35 points, or 1.1%, to 5,903.03.
The NASDAQ Composite wilted 375.30 points, or 1.9%, to 19,490.65.
Nvidia shares fell 6.2% after hitting a record. The company on Monday unveiled new chips for desktop and laptop PCs that use the same Blackwell architecture. Tesla slipped 4% after Bank of America downgraded the electric vehicle maker given its high valuation and risks associated with its strategy. Meta Platforms shed nearly 2%, while Apple and Microsoft each dipped more than 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.
Prices for the 10-year Treasury dropped sharply, raising yields to 4.69% from Monday’s 4.61 %. Treasury prices and yields move in opposite directions.
Oil prices took on 70 cents to $74.26 U.S. a barrel.
Prices for gold reattached $17.10 an ounce to $2,664.50 U.S.
