All three major US stock indexes closed down, with the S&P 500 ending a four-day winning streak and the Dow Jones Industrial Average posting its first loss in eight sessions.
Among the S&P industry groups, the rate-sensitive real estate space ended at the bottom of the standings with a 1.7% loss, including a 3.8% rout in the iShares U.S. Home Construction ETF. The blue-chip Dow Jones grew by 68.24 points, with UnitedHealth and Walmart being the best-performing stocks in the index.
The S&P 500 fell 18 points, or 0.7 percent, to 2,711. The Nasdaq composite dropped 0.8 percent to 7,351.63 as Amazon, Microsoft and Google-parent Alphabet all pulled back more than 1 percent. The selling on Wall Street was accompanied by a rise in bond yields, with the 10-year Treasury yield topping 3.07%.
Losses in technology and health care companies helped pull US stocks lower Tuesday, placing the Dow Jones industrial average on track to end an eight-day winning streak.
Banks bucked the downward trend Tuesday and rose along with bond yields. The prospect of higher interest rates weighed on homebuilders, while the pickup in bond yields sent shares in high-dividend paying stocks lower.
Core April retail sales - which excludes gasoline, automobiles, building materials and food services - rose at a brisker 0.4 percent monthly pace over March, as consumer spending is quickening its pace after a first-quarter slowdown. The Russell 2000 index of smaller-company stocks finished flat at 1,600.34.
Technology and health care companies took some of the worst losses. Small-company stocks also rose.
The declines Tuesday put the Dow Jones industrial average on track to end an eight-day winning streak.
BOND YIELDS: Bond prices fell.
USA stocks ended lower on Tuesday as the closely-watched 10-year Treasury yield reached new highs. Mortgage rates, which have been rising this year, tend to track the movement in the 10-year Treasury yield. The Nasdaq composite fell 60 points, or 0.8 percent, to 7,349. The yield on the 10-year Treasury rose to 3.07 percent from 3 percent late Monday. Australia's S&P/ASX 200 lost 0.6 percent. The Nasdaq climbed 32 points, or 0.4 percent, to 7,435. South Korea's Kospi slipped 0.7 percent to 2,458.54 while Hong Kong's Hang Seng dropped 1.2 percent to 31,152.03.