Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street ends lower as Apple and Tesla retreat

Published 03/02/2021, 07:12 AM
Updated 03/02/2021, 04:05 PM
© Reuters. The front facade of the NYSE is seen in New York

© Reuters. The front facade of the NYSE is seen in New York

By Noel Randewich

(Reuters) - Wall Street ended lower on Tuesday, pulled down by Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA), while materials stocks climbed as investors waited for the U.S. Congress to approve another stimulus package.

Following strong gains in the prior session, technology shares dipped in the resumption of a rotation by investors out of stocks that outperformed due to the coronavirus pandemic and into others viewed as likely to do well as the economy recovers. The S&P 500 materials and consumer staples sector indexes rose.

Yields on the benchmark 10-year Treasury bonds have stabilized after hitting a one-year high last week.

"Part of it is just because technology went up so much last year, and if interest rates are on the rise then the value of their future cash flows is diminished," said Tom Hainlin, global investment strategist at U.S. Bank Wealth Management.

The S&P 500 on Monday logged its best day since June as markets cheered approval of a third COVID-19 vaccine in the United States and the U.S. House of Representatives' green light for a $1.9 trillion coronavirus relief package.

The U.S. Senate will start debating President Joe Biden's relief bill this week when Democrats aim to pass the legislation through a maneuver known as "reconciliation," which would allow the bill to pass with a simple majority.

Apple dipped and Tesla declined, with the two companies contributing the most to the S&P 500's loss for the day.

The S&P 500 technology sector index dropped, extending a pullback from late last month after a selloff in the U.S. bond market sparked fears over highly valued stocks.

Unofficially, the Dow Jones Industrial Average fell 0.46% to end at 31,390.47 points, while the S&P 500 lost 0.81% to 3,870.36. The Nasdaq Composite dropped 1.69% to 13,358.79.

The Russell 2000 index of smaller companies declined, trimming its gain in 2021 to about 14%, compared with the S&P 500's rise of under 4% in the same period.

Kohl's Corp (NYSE:KSS) rose after it posted holiday-quarter results beyond market expectations on a boost in online sales and as the company reined in costs.

© Reuters. FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the NYSE

TV ratings provider Nielsen jumped after it sold its advanced video advertising business to television streaming platform provider Roku (NASDAQ:ROKU). Shares of Roku dropped.

Latest comments

Harvesting the gains. Problem is, where you going to go into bankrupt government bonds after the hit they are taking from lack of taxes during pandemic?
The feds got this. Yield controls. Twist part 2. This market is more controlled than a French puppet. Afterburners full blast and the fuel is unlimited debt until the universe implodes. Not sure how black holes are created, but I bet the solar system had a central bank.
Jesus. Its been one day. Chill lol.
bubble market ?
I can't get it and I don't understand, yesterday it was up but today its a different ball game. I really don't understand, they just not making any sense.
Welcome to Biden’s market!
Another miraculous recovery for the greatest investment fraud in history. Compare yesterday's chart with today's chart if you want to see the predictable, flagrant, criminal intervention in color. The US Ponzi Scheme is the biggest investment joke in the world.
march isn't good for the market, it's better to take this month off and focus on something else.
Can't read into 1 or 2 day moves very much either way.
One day uptrend is over.
Lol Right what a pointless article
We go up tomorrow
It is only March 2nd.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.