Major U.S. stock indexes pulled back Tuesday as investors sold government bonds along with shares of technology companies that had powered higher in a low-yield environment.
Declines in shares of Microsoft , Apple , Amazon.com and Facebook weighed on the broad stock market, while in bond markets, the yield on the benchmark 10-year U.S. Treasury note ticked higher, hovering near its highest level since January 2020. Yields rise as prices fall, and the brightening economic outlook together with concerns about higher inflation have sapped demand for what are seen as the world’s safest assets.
The S&P 500 fell 12.54 points, or 0.3%, to 3958.55, off 0.4% from its record close last week. The Dow Jones Industrial Average dropped 104.41 points, or 0.3%, to 33066.96. The Nasdaq Composite slipped 14.25 points, or 0.1%, to 13045.39.
The yield on the 10-year Treasury note, meanwhile, rose to 1.724%, from 1.721% on Monday.
The rise in yields, which were as low as 0.915% at the start of the year, has curbed investor appetite for technology stocks, which often are afforded high price tags based on expectations of growth far into the future. After posting outsize returns last year, shares of Apple and Amazon are down in 2021.