Slumping technology stocks left the S&P 500 slightly lower on Wall Street Tuesday, even as the Dow Jones Industrial Average of 30 blue-chip companies marked another record high. The S&P 500 slipped 0.1%, while the tech-heavy Nasdaq gave up 1.3%. Microsoft, Apple, and major chipmakers like Nvidia sank, even as banks and other sectors rose. Bond yields continued to climb. The yield on the 10-year Treasury note rose to 1.65%. Oil prices rose, which helped send energy stocks higher. Economic reports and company earnings get rolling again this week after the year-end holidays.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Major U.S. stock indexes are mixed in choppy trading Tuesday afternoon, as a slide in technology companies keeps gains by banks and other sectors in check.
The S&P 500 was up less than 0.1% as of 3:37 p.m. Eastern after having been down most of the day. The Dow Jones Industrial Average was up 259 points, or 0.7%, to 36,850. The tech-heavy Nasdaq was down 1.3%.
Banks were among the biggest gainers as bond yields rose, pushing the yield on the 10-year Treasury to 1.66% from 1.63% late Monday. That followed a big move higher on Monday. When investors sell bonds their prices fall and their yields rise. JPMorgan Chase rose 3.9%.
Industrial stocks also notched gains. Deere & Co. rose 5.5% and Caterpillar gained 5.3%, which led the Dow higher. And the price of U.S. crude oil rose 1.2%, giving a boost to energy stocks. Exxon Mobil rose 3.6%.
Those gains were nearly outweighed by technology stocks, which were the biggest decliners in the S&P 500. Microsoft fell 1.5% and Apple slid 1.1%. Health care stocks also helped weigh down the index. Pfizer dropped 3.4%.
A mix of retailers and other companies that rely on consumer spending also lost ground. Amazon fell 1.5% and Starbucks slid 2%.
Stocks got 2022 off to a good start Monday, with the S&P 500 and Dow setting new highs. Investors have a mix of economic and corporate news to focus on in the first week of the new year as they try to gauge economic growth with the virus pandemic and persistently rising inflation.
The job market will be a major focus for investors going forward. Investors are anticipating the Labor Department’s jobs report for December, which will be released Friday. On Tuesday, the agency’s monthly Jobs Openings and Labor Turnover Survey showed that a record 4.5 million American workers quit their jobs in November, a sign of confidence and more evidence that the U.S. job market is bouncing back strongly from last year’s coronavirus recession.
“Markets are going to be trying to look through the year,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “Right now, markets are cautiously confident.”
OPEC and allied oil-producing countries plan to stick with their road map to slowly restore cuts in output made during the depths of the pandemic, including adding 400,000 barrels per day in February.
Some sectors of the economy are still struggling, especially with supply chain problems. Growth in manufacturing slowed in December to an 11-month low, according to The Institute for Supply Management, a trade group of purchasing managers. The organization will release its December report for the service sector on Thursday.
Investors are also anticipating the minutes from the Federal Reserve’s latest policy meeting in December, set for release on Wednesday. The central bank plans to hasten the withdrawal of its support for the markets and economy in the face of rising inflation. It will speed up its withdrawal of bond purchases that have helped keep interest rates low, and investors are closely watching the Fed for any signals on when it will eventually raise its benchmark interest rate.
“The big question is how worried is the Fed about inflation,” McMillan said. “We’re really on the cusp of seeing how the Fed is going to move and the minutes will be informative about that.”
Walgreens, Constellation Brands and Conagra report their latest quarterly earnings on Thursday.