Dow Falls from Record Highs

U.S. stocks fell Tuesday as major technology shares came under pressure again after the 10-year Treasury yield touched its highest level since January 2020.

The Dow Jones Industrials dropped 104.41 points to 33,066.96. Monday, the index reached a new all-time high. Apple and Microsoft were among the biggest losers in the 30-stock Dow, falling more than 1{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29} each.

The S&P 500 subtracted 12.54 points, to 3,958.55, led by losses in consumer staples and technology.

The NASDAQ Composite backpedaled 14.25 points to 13,045.39.

Classic reopening plays rallied after the data release. American Airlines jumped more than 5{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}, while United Airlines popped more than 3{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}. Carnival and Norwegian Cruise Line both climbed at least 3{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}.

The market experienced heightened volatility this week amid the continued fallout after a hedge fund was forced to liquidate its position in several media stocks.

ViacomCBS and Discovery both rebounded after registering heavy losses last week prompted by Archegos Capital Management selling large blocks of stocks late last week. Discovery jumped more than 5{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}, while ViacomCBS rose 3.6{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}.

Wells Fargo advanced more than 2{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29} after the bank said it didn’t experience losses related to closing out its exposure to Archegos.

Other bank stocks also staged a comeback. Goldman Sachs climbed 1.9{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}. JPMorgan and Bank of America also rose more than 1{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29} each.

Credit Suisse and Nomura posted heavy losses this week after warning of “significant” hits to first-quarter results following the hedge fund’s selling.

Despite the recent volatility, the Dow is up 6.9{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29} and S&P 500 is firmly higher for the month, gaining 3.9{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}.

Investors digested a reading on consumer confidence that far exceeded expectations. The Conference Board’s Consumer Confidence Index surged in March to 109.7, its highest reading in a year. Economists polled by Dow Jones expected the index to rise to 96.8 from 90.4 in February.

Prices for 10-Year Treasurys regained ground, lowering yields to Monday’s 1.71{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29}. Treasury prices and yields move in opposite directions.

Oil prices lost their grip on $1.10 to $60.46 U.S. a barrel.

Gold prices slouched $31.40 to $1,683.20.

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