US stocks closed lower on Tuesday as investors sold shares of technology-related companies after recent hot streak and weighed a top regulator’s comments on troubled banks.
According to preliminary data, the S&P 500 lost 0.2%to 3,971.36 units, while the Nasdaq Composite fell 0.4%, to 11,716.56. The Industrial Average Dow Jones fell 0.1%to 32,394.03 units.
Michael Barr, the Federal Reserve’s chief banking regulator, told a Senate panel that Silicon Valley Bank did a “horrible” job managing risk before it collapsed.
Thus, this day, the actions of Apple and Microsoftalong with others related to technology, were among the biggest losses for the S&P 500.
“It’s a bit of a continuation of yesterday’s (Monday) pullback in tech stocks. We are seeing a bit of profit taking“said Michael James, managing director of equity trading at Wedbush Securities. “Some of the enthusiasm is waning a bit.”
The S&P 500 technology index extended recent declines on Tuesday but racked up a strong gain for the quarter.
Rising Treasury yields also weighed on tech stocks. Returns rose from Friday’s six-month lows.
Earlier in the day, a survey showed that US consumer confidence rose unexpectedly in March, but also that Americans are a bit worried about the job market.
Strategists said that as lenders report their quarterly results starting next month, the market will learn more about the post-collapse health of banks from some large regional lenders that stoked fears of contagion across the sector
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