Stock market investors rotated out of stocks in the utilities and real estate sectors, which are typically seen as defensive in nature, in favor of more cyclical sectors like information technology and financials. The S&P 500 index SPX, +0.23% erased a 0.3% gain to trade flat Thursday afternoon, while the Nasdaq Composite index COMP, -0.08% lost 15 points, or 0.2% to 8,187. The Dow Jones Industrial Average DJIA, +0.85% , meanwhile rose 162 points, or 0.6%. Helping to suppress the S&P were steep selloffs in the real estate sector, which fell 1.7%, per the Real Estate Select Sector SPDR fund XLRE, -1.28% as long-term interest rates rose in response to a weak bond auction. Utilities stocks, also seen as safer ‘bond proxy’ were the second worst-performing sector, down 0.7%, as seen in the Utilities Select Sector SPDR fund XLU, +0.03% The yield on the 30-year U.S. Treasury bond TMUBMUSD10Y, +3.37% rose more than 6 basis points to 2.635%, while the 10-year U.S. Treasury note TMUBMUSD30Y, +2.91% spiked 6 basis points to 2.212%.
S&P 500 pares gains as investors dump real estate, utilities stocks
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