by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended in disarray on Tuesday as rising U.S. Treasury yields weighed on interest-sensitive technology stocks.
The Dow Jones Industrial Average rose 0.11%, or 37.63 points, to 33,241.56.
The broader S&P-500 fell 15.57 points, or 0.40%, to 3,829.25.
The Nasdaq Composite fell by 144.64 points (-1.38%) to 10,353.23 points.
“Rising (treasury) rates are weighing on growth stocks, and on the other hand, industrials, utilities and energy stocks are outperforming,” said Ryan Detrick, chief strategist at Carson Group.
“It’s important to remember that other sectors can catch up when high-flying values come back down to earth,” he added.
Growth stocks have lost more than 30% in 2022, compared with a 7.5% decline recorded in other sectors this year.
Four days into the year, the three flagship indexes on the New York Stock Exchange are on track to record their biggest annual declines since the 2008 financial crisis.
“This year has been bad for stocks, but even worse for bonds. That’s extremely rare,” says Ryan Detrick. “This is an unfortunate reminder that markets sometimes hide surprises.”
On shares, Tesla ended lower after Reuters reported that the company plans to cut production at its Shanghai factory in January. Tesla has lost nearly 70% of its value this year.
Southwest Airlines plummeted after flight cancellations caused by extreme weather conditions that hit the US last weekend.
(With contributions from Amruta Khandekar and Ankika Biswas; French version by Camille Raynaud)
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