Investing.com – U.S. stocks closed mostly lower on Tuesday, as investors considered the prospect of a rebound in second-quarter economic growth amid the release of mixed economic data while a surge in tech stocks capped losses.
All the three main U.S. indexes ended the day in negative, following the release of soft consumer confidence data while consumer spending recorded its biggest increase in four months.
The Commerce Department said that consumer spending, which accounts for roughly 70% of U.S. economic activity, rose 0.4%, in line with economists’ forecasts.
The Consumer Confidence Index fell to 117.9, which was below expectations of a rise to 119.8.
Losses in equities were limited by a broad based rally in tech stocks, as shares of Amazon.com Inc (NASDAQ:AMZN) surpassed $1,000 for the first time.
Investors turned attention to monetary policy later during the session, following comments on economic growth and interest rates from two Fed officials.
Federal Reserve Governor Lael Brainard said Tuesday that an interest rate hike is "likely appropriate soon", but warned that slowing inflation could delay future rate hikes.
Brainard’s comments came after Dallas Fed President Robert Kaplan said he sees U.S. growth remaining near 2% and not the 3% or more forecasted by President Donald Trump's administration.
The Dow Jones Industrial Average closed down at 21,029.47 down 0.24%. The S&P 500 closed roughly flat while the Nasdaq Composite closed at 6203.19, down 0.11%
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers; Verizon Communications Inc (NYSE:VZ) up 1.9%, 3M Company (NYSE:MMM) up 0.9%, while Microsoft Corporation (NASDAQ:MSFT) rose 0.6%.
Goldman Sachs Group Inc (NYSE:GS) down 2%, JPMorgan Chase & Co (NYSE:JPM) down 1.7% and Chevron Corporation (NYSE:CVX) down 0.6%, were among the worst Dow performers of the session.