© Reuters. The Dow closed lower on Tuesday.
Investing.com – The Dow seesawed to a lower close Tuesday as fears over rising rates hurt sentiment, even as bond yields eased from multi-year highs and tech stocks rebounded from a selloff a day earlier.
The fell about 0.21%. The fell 0.14%, while the rose 0.03%.
For the second-straight day, investors had to contend with wild swings on Wall Street as markets continued to dance to the tune of movements in U.S. government bond yields.
The retreated intraday from a fresh seven-year high above 3.25%, dampening the narrative somewhat that higher yields would prompt investors to ditch riskier assets like stocks in favor of less riskier ones like Treasuries.
Still, gains in the broader market were kept in check by a malaise in materials, led by a rout in shares of PPG Industries (NYSE:) after the paint company said costs are rising at the fastest pace in two years, sounding the alarm bells for a pullback in profits of U.S. manufacturers.
Sherwin-Williams (NYSE:), WestRock (NYSE:) and Packaging Corp of America (NYSE:) also weighed heavily on materials, with the latter’s shares off 8%.
Energy, however, attempted to lead the charge higher, supported by surging oil prices as Hurricane Michael barrelled toward the raising the prospect of output disruptions.
Bargain-hunting investors, meanwhile, scooped up battered tech stocks following a slide a day earlier as Facebook (NASDAQ:), Apple (NASDAQ:) and Netflix (NASDAQ:) closed higher.
Sentiment on stocks was soured ahead of the U.S. open, after the International Monetary Fund cut global economic growth forecasts for 2018 and 2019, and its 2019 estimates for U.S. and China, citing pressure from the monthslong trade war.
President Donald Trump did little to allay investor fears about the U.S.-China trade war after he repeated a threat to impose tariffs