U.S. markets saw sharp intraday swings Tuesday as the Nasdaq Composite erased an early 1% gain to close 0.12% lower, highlighting mounting pressure on tech stocks. Meanwhile, the Dow Jones Industrial Average rose 0.24% and the S&P 500 edged up 0.14%, suggesting underlying market resilience despite sector rotation.
What Drove the Shift in Investor Sentiment?
Initial optimism fueled by strong economic indicators faded as Treasury yields climbed again, weighing heavily on high-growth names. Rising concerns over the Federal Reserve’s policy trajectory contributed to profit-taking in expensive tech valuations.
- Major tech stocks showed divergence, with some leading names pulling back sharply
- Defensive sectors like utilities and consumer staples outperformed
- Trading volume spiked, signaling increased market uncertainty
Analysts suggest investors are rebalancing portfolios amid valuation concerns. Without strong catalysts ahead, equities may remain range-bound in the near term.