Wall Street falls as high bond yields, sinking health stocks weigh

Wall Street falls as high bond yields, sinking health stocks weigh

The Dow had tumbled almost 540 points over Monday on Tuesday amid a broad market sell-off as U.S. Treasury yields surged.

The jump in Boeing's shares, the biggest weight in the price-weighted Dow and the S&P, helped the industrials sector rise 0.75 percent, the most among the 11 major S&P sectors.

The Dow Jones Industrial Average f ell 177.23 points, or 0.67 per cent, to 26,439.48, the S&P 500 lost 19.34 points, or 0.67 per cent, to 2,853.53 and the Nasdaq Composite dropped 39.27 points, or 0.52 per cent, to 7,466.51.

Investors were parsing President Donald Trump's first State of the Union address and awaiting a Federal Reserve statement following the conclusion of its two-day meeting.

Investors were phased by the two day decline on Wall Street, as Gennadiy Goldberg, interest rates strategist at TD Securities in NY said this pushed people in to the arms of the safety of U.S. government bonds. Concerns are starting to enter the market that inflation could be catching up and higher interest rates could pour cold water on the bull run.

The S&P technology index fell 0.9 per cent and was the biggest drag on the benchmark index following Wall Street's strongest four-week run since 2016. By notching another month of gains in January, the Dow and S&P 500 are on track to extend their win streaks to 10.

Wall Street stocks tumbled for a second straight session Tuesday, with the Dow posting the largest decline since May, as health care shares sank on worries about Amazon's push into the sector.

Wall Street falls as high bond yields, sinking health stocks weigh

The VIX, a measure of how much volatility investors expect in stocks, was up 4.8 percent, its highest level since August.

More than the rise in bond yields, the pace of the increase is what could hurt equity markets, said Hussein Sayed, chief market strategist at FXTM.

The Standard & Poor's 500 index rose 15 points, or 0.6 percent, to 2,837. Japan's Nikkei ended down 0.8% as the yen strengthened against the dollar.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.74 percent.

USA stock index futures drifted higher late on Tuesday as Trump gave his State of the Union address. Boeing, easily the best Dow stock since the start of 2017, soared 5% after reporting record annual profits.

Advancing issues outnumbered decliners on the NYSE by 2,146 to 461.

The index closed down 362.59 points at 26,076.89 in NY, with the broader S&P 500 index falling 31.10 points to 2,822.43. Drug stocks such as Eli Lilly and Merck slumped on Wednesday, while the iShares NASDAQ Biotechnology ETF retreated 1%.

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