S&P 500 closes lower, weighed by declines in bank and retail shares: Live updates


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The broad-based S&P 500 slipped Tuesday, as it was unable to build on the momentum seen in the previous session.

Investors remain cautious with the 10-year Treasury yield notching new highs this week and Federal Reserve Chairman Jerome Powell slated to give a key speech later this week.

The S&P 500 edged 0.3% lower to 4,387.55, while the tech-heavy Nasdaq Composite held on to a 0.06% gain at 13,505.87. The Dow Jones Industrial Average lagged, falling 174.86 points, or 0.5% to 34,288.83.

Several regional and larger banks fell after S&P Global cut credit ratings and revised its outlook for multiple U.S. banks on Monday, citing “tough” operating conditions. The financial sector ended Tuesday down 0.9%, making it the worst-performing sector of the S&P 500. KeyCorp and Comerica dropped 4.1% each. Big bank JPMorgan Chase also fell 2.1%.

Dick’s Sporting Goods and Macy’s fell by 24% and 14%, respectively, on cautious full-year forecasts, also leading the SPDR S&P Retail ETF lower. On the other hand, major tech-related names Netflix and Alphabet rose.

Wall Street has been focused on the bond market after the benchmark 10-year Treasury yield hit its highest level since 2007 on Monday. The 10-year yield eased slightly Tuesday to 4.33%.

“I think [the market] is kind of wavering right now as the 10-year yield is hovering right around those October highs,” Adam Turnquist, chief technical strategist at LPL Financial said. “We’re watching for an official breakout on the 10-year. … I think if we start moving higher, that’s certainly a warning sign for maybe a little bit deeper pullback in equity markets.”

While Turnquist said he is not bearish on stocks, he thinks “we’re in the pullback phase of a bull market.” The strategist named the industrial sector as his top pick.

Crossmark Global Investments’ Victoria Fernandez similarly expects a continuing pullback in the market, which she said will be influenced by climbing yields and a more cautious consumer.

“I think we’re gonna see higher yields bite a little bit,” said Fernandez, the firm’s chief market strategist. “Now that we’re through earnings, it’s the macro story that’s going to be driving a lot of what we see in market volatility, and positive macro stories are really a double-edged sword because all that does is tell the Fed that their financial conditions are not tight enough.”

Investors are anticipating Powell’s speech at the Kansas City Fed’s annual economic symposium in Jackson Hole this Friday. Nvidia’s earnings on Wednesday also will be closely watched.


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