The Dow Jones Industrial Average fell 100 points, or 0.3%, while the S&P 500 and the Nasdaq Composite were lower by 0.31% and 0.11%, respectively. The losses losses came as the 10-year yield ticked above 1.77% early in the session to a level last seen in January 2020. The benchmark yield finished the session little changed near 1.72%.
Stocks fell despite a jump in the Conference Board's Consumer Confidence index which rose to a reading of 109.7, the highest level in a year.
In stocks, the early spike in bond yields weighed on mega-cap technology stocks with Apple Inc. and Microsoft Corp. ending among the laggards.
Meanwhile, financials outperformed as the rise in longer-dated bond yields steepened the yield curve.
However, Credit Suisse AG and Nomura Holdings Inc. remained under pressure after both said on Monday that they would suffer substantial losses due to the hedge fund Archegos Capital Management needing to unwind billions of dollars of positions.
TickerSecurityLastChangeChange %CSCREDIT SUISSE GROUP AG10.99-0.40-3.51%Powered by
Elsewhere, PayPal Holdings Inc. will launch in the coming months launch a cryptocurrency checkout service for U.S. customers that will convert digital coins into fiat currency that can be used to make purchases.
TickerSecurityLastChangeChange %PYPLPAYPAL HOLDINGS, INC.236.54+0.87+0.37%Powered by
In commodities, West Texas Intermediate crude oil fell $1.01 to $60.55 per barrel as the Suez Canal reopened following the refloating of the container ship Ever Given and gold tumbled $28.30 $1,686.30 per ounce.
Overseas markets rallied with Germany’s DAX 30 trading up 1.29%, France’s CAC 40 advancing 1.21% and Britain’s FTSE 100 ticking higher by 0.53%.
In Asia, Hong Kong’s Hang Seng index gained 0.84%, China’s Shanghai Composite added 0.62% and Japan’s Nikkei 225 rose 0.16%.