A man walks past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Tuesday, March 2, 2021. Asian stock markets were mixed Tuesday after Wall Street rose as investor concern about possible higher interest rates receded.
A man walks past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Tuesday, March 2, 2021. Asian stock markets were mixed Tuesday after Wall Street rose as investor concern about possible higher interest rates receded.
People stand in front of a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Tuesday, March 2, 2021. Asian stock markets were mixed Tuesday after Wall Street rose as investor concern about possible higher interest rates receded.
In this photo provided by the New York Stock Exchange, traders work on the floor, Monday, March 1, 2021. Stocks are rising across the board on Wall Street as traders welcomed a move lower in long-term interest rates in the bond market. Investors were also watching Washington as a big economic stimulus bill moved to the Senate.
In this photo provided by the New York Stock Exchange, trader Robert Charmak works on the floor, Monday, March 1, 2021. Stocks are rising across the board on Wall Street as traders welcomed a move lower in long-term interest rates in the bond market. Investors were also watching Washington as a big economic stimulus bill moved to the Senate.
FILE – In this Nov. 5, 2020 file photo, a sign for Wall Street is carved in the side of a building. Investors hit the pause button a day after the biggest market rally in nine months, leaving major indexes little changed in the first few minutes of trading. The S&P 500 slipped a bit less than 0.1{dcfa4b42334872b3517041d7075c48816e8f617446b245cec30e8949517ffd84} in the early going Tuesday, March 2, 2021.
In this photo provided by the New York Stock Exchange, Tuesday, March 2, 2021, John Santiago, left, works with fellow traders on the floor. Stocks are drifting lower in morning trading on Wall Street Tuesday, giving back some of their big gains from a day earlier.
In this photo provided by the New York Stock Exchange, Thomas Ferrigno, center, and fellow traders work with specialist Meric Greenbaum, right, on the floor, Tuesday, March 2, 2021, in New York. Stocks are drifting lower in afternoon trading on Wall Street Tuesday, giving back some of their big gains from a day earlier.
In this photo provided by the New York Stock Exchange, John Santiago, left, works with fellow traders on the floor, Tuesday, March 2, 2021, in New York. Stocks are drifting lower in morning trading on Wall Street Tuesday, giving back some of their big gains from a day earlier.
Stocks closed broadly lower on Wall Street Tuesday, giving back some of their big gains from a day earlier.
The S&P 500 fell 0.8{dcfa4b42334872b3517041d7075c48816e8f617446b245cec30e8949517ffd84} after earlier flipping between small gains and losses. A day before, the benchmark index had leaped 2.4{dcfa4b42334872b3517041d7075c48816e8f617446b245cec30e8949517ffd84} for its best performance since June. Technology and internet stocks accounted for much of the selling, a reversal from a day earlier.
For weeks, investors have been focused on the bond market, where a swift recent rise in interest rates is threatening one of the main reasons for the stock market’s run to records through the pandemic. Bond yields eased across the board Tuesday, but expectations for stronger economic growth in coming months continue to fuel worries that interest rates will head higher.
Higher rates force investors to rethink how much they’re willing to pay for stocks, making each $1 of profit that companies earn a little less valuable. That’s making Wall Street reconsider the value of technology stocks, in large part because their recent dominance left them looking even pricier than the rest of the market.
“Valuations have just become problematic across certain pockets of the U.S. (stock) market and investors are starting to realize that,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.
The S&P 500 fell 31.53 points to 3,870.29. The Dow Jones Industrial Average lost 143.99 points, or 0.5{dcfa4b42334872b3517041d7075c48816e8f617446b245cec30e8949517ffd84}, to 31,391.52. The tech-heavy Nasdaq composite dropped 230.04 points, or 1.7{dcfa4b42334872b3517041d7075c48816e8f617446b245cec30e8949517ffd84}, to 13,358.79.
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