US Market Indexes Close Lower on Tuesday

E-mini Dow Jones Industrial Average

Daily June E-mini Dow Jones Industrial Average

United States stocks fell firmly on Tuesday after a surge in USA government bond yields to their highest level in nearly seven years challenged appetite for equities compared with climbing rates for risk-free bonds. The Dow Jones Industrial Average lost 193.07 points, or 0.8%, to 24,706.34, putting an end to a 8-day rally, the longest since last September.

KEEPING SCORE: The S&P 500 index fell 25 points, or 1 percent, to 2,704 as of 3:30 p.m.

The S&P 500 posted 10 new 52-week highs and seven new lows; the Nasdaq Composite recorded 82 new highs and 51 new lows. Bond yields tend to rise when investors expect faster economic growth and higher inflation.

"A little bit of today's jitters are related to a hangover to yesterday's wrongly placed exuberance that a trade deal was imminent, and the reality is we are in for a long slugfest between the USA and China", said Jon Mackay, investment strategist at Schroders North America in NY. Higher mortgage rates can make it harder for would-be buyers to purchase a home.

MGM Resorts rose 1.6 percent.

Home Depot dropped 1.4 percent to $187.98 after the home-improvement retailer reported weaker-than-expected sales, partly because of inclement weather, and said the second quarter got off to a slow start.

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Oil prices ended a shade firmer after retreating from multi-year highs hit early in the day on Tuesday, supported by concerns that US sanctions on Iran are likely to restrict crude exports from one of the biggest producers in the Middle East. Nvidia fell 4.4 percent to $244.13. Brent crude, used to price worldwide oil, added shed 8 cents to $78.35 a barrel in London.

CURRENCIES: The dollar rose to 110.38 yen from 109.66 yen late Monday.

The greenback's gains weighed on precious metals prices. Wholesale gasoline added a penny to $2.21 a gallon.

Major indexes in Europe finished mixed Tuesday.

"Yields on treasuries with shorter maturities are at their highest closing and intraday points in about a decade, continuing the basis point increases that began in September 2017 and have sustained so far this year", Tradeweb noted. Ulta Beauty added 1.1 percent to $249.64. France's CAC 40 inched up 0.2 percent. In Japan, the Topix index was off 0.2%. South Korea's Kospi slipped 0.7 percent. Hong Kong's Hang Seng fell 0.8%.

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