Stocks ended mixed on Tuesday, with the S&P 500 and Nasdaq falling lower while the Dow Jones rose to a fresh closing high as market participants looked ahead to more economic data. Each of the three major indices reach record intraday highs on Tuesday, with rising U.S. Treasury yields dimming sentiment.
The 10-year U.S. Treasury yield rose 9 basis points on Tuesday to top 1.3% for the first time since Feb. 2020. Additionally, the 30-year rate soared to its highest level in a year. Investors view higher interest rates as a threat to sectors that have benefitted from the pandemic's low rate environment.
Here's how the market settled to start the shortened holiday week:
S&P 500 Index (NYSE: SPY): -0.06% or -2.32 points to 3,932.51
Dow Jones Industrial Average (NYSE: DIA): +0.20% or +63.62 points to 31,522.02
Nasdaq Composite Index (NASDAQ: QQQ): -0.34% or -47.97 points to 14,047.50
For Stocks, energy names--Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), and ExxonMobil (NYSE: XOM) rose higher as cold weather across the United States caused fuel shortages and rising oil prices.
For Sector Performance, most sectors on the S&P 500 settled in negative territory on Tuesday, with only Energy (NYSE: XLE), Financials (NYSE: XLF) and Communication Services (NYSE: XLC) ending higher. Utilities (NYSE: XLU), Real Estate (NYSE: XLRE) and Health Care (NYSE: XLV) were the leading declines, each falling over 1%.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) rose on Tuesday as U.S. Treasury yields reached pre-pandemic highs, which boosted risk sentiments. The dollar index, which tracks the greenback against other global rivals, increased 0.21% to 90.508. Bitcoin the $50,000 threshold to a new record high on Tuesday of $50,602 as the digital currency gains more interest from companies. The cryptocurrency declined from its highs in later trade, falling to roughly $48,675. Gold (NYSE: GLD) prices declined on Tuesday on the stronger dollar and Treasury yields. Spot gold slid 1.2% to $1,796.50 per ounce, while U.S. gold futures settled 1.3% lower at $1,799.00 per ounce. Crude oil futures settled higher on Tuesday as a winter storm shut down refineries in Texas. International benchmark Brent Crude (NYSE: BNO) increased 0.41% to $63.56 per barrel, after rising to its highest since Jan. 2020 in the previous session, while domestic index West Texas Intermediate (NYSE: USO) gained 1.16% to $60.16 each.
For Wednesday, market participant will turn their attention to a slew of economic data releases for January, including retail sales, as well as the minutes from the Federal Open Market Committee's Jan. 27 meeting. Quarterly corporate earnings from companies like Shopify (NYSE: SHOP) and Analog Devices (NASDAQ: ADI) are also slated for release.