The S&P 500 and the NASDAQ closed lower, as rising Treasury yields and rising inflation prospects raised concerns about equity valuation, hurting stocks in US companies. high growth.
The yield on 10-year US Treasuries rose to 1.37 percent. Since early February, 10-year yields have risen 26 basis points, heading for their biggest monthly gain in three years.
Even so, analysts said the decline in stocks was expected after a dizzying rally.
“This is a small pullback, mainly because stocks have overheated and there are some concerns that people are throwing a storm in a glass of water,” said Brian Reynolds, chief market strategist at Reynolds Strategy.
The analyst mentioned concerns about rising yields, but noted that junk bond returns hit record lows last week, suggesting investors have shifted from the safety of Treasuries to corporate risk. “That is bullish for stocks,” he added.
Federal Reserve Chairman Jerome Powell is scheduled to speak before the Senate Banking Committee today, and investors are expected to be on the lookout for any possible changes in the central bank’s dovish outlook.
Shares of Apple, Microsoft, Alphabet, Tesla and Amazon.com resumed their slide from the previous week.
The Dow Jones Industrial Average rose 0.09%, to 31,521.69 units, while the S&P 500 lost 0.77%, to 3,876.5 units. The NASDAQ Composite fell 2.46% to 13,533.05 units.
The S&P 500 has seen five consecutive sessions of declines, its longest negative streak in a year.
The main index of the Mexican Stock Exchange, the S & P / BMV IPC, rose 0.10% to 44,946.60 points.