U.S. stocks got hit with a wave of selling midday after U.S. Treasury Secretary Janet Yellen signaled interest rates may need to rise to manage the economic rebound and prevent the economy from overheating. Additionally, investors digested a fresh batch of corporate earnings.
The Nasdaq Composite paced the declines down over 2.6% led by Tesla and Apple.
While the Dow Jones Industrial Average dropped over 220 points or 0.67% and the S&P 500 cratered 1.29%.
In earnings news, both Pfizer and CVS boosted financial outlooks as demand for COVID-19 related items fueled results and shares bucked the selloff.
"We delivered strong first-quarter results and improved our outlook for the year," said CVS Health President and CEO Karen S. Lynch. "We continue to execute on our strategy while simultaneously managing through a pandemic, helping the country on the road to recovery.
Moderna also in focus after announcing plans to boost its manufacturing facility in Massachusetts. "Our manufacturing facility has been core to our long-term strategy and has enabled us to provide the scale and flexibility to support the development of our mRNA medicines and vaccines including our COVID-19 vaccine," said CEO Stéphane Bancel in a statement.
Marathon Oil shares were also lower after the company announced it has reduced $500 million in debt.
Ticker Security Last Change Change % MRO MARATHON OIL 11.32 +0.17 +1.57%
After the closing bell investors will get results from Lyft, Xilinx, and Zillow to name a few.
In commodities, oil continues its upward climb touching the $65 per barrel level, while gold was modestly lower trading at $1,782 an ounce.