The major averages fell on Tuesday, following a strong start to May, with technology stocks experiencing the biggest selling pressure.
The Dow Jones Industrials were thumped 257.34 points to 33,855.59.
The S&P 500 slid 53.89 points, or 1.3%, to 4,138.77.
The NASDAQ Composite dissolved 385.35 points, or 2.8%, to 13,414.37.
U.S. equities hit their lows of the day following Treasury Secretary Janet Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating.
The so-called FAANG names (Facebook, Amazon, Apple, Netflix and Google-parent Alphabet) were all trading lower shortly after the open. Apple’s stock shed more than 2%.
Meanwhile, investors also ditched reopening plays with airlines, cruise lines and retailers giving back some of Monday’s gains.
Pfizer shares were flat despite posting quarterly results that beat expectations and raising its 2021 guidance. CVS Health shares jumped 2.5% after the pharmacy chain and insurance company also raised its guidance.
United States Steel moved 4% higher after Credit Suisse upgraded the stock to outperform from underperform, saying that the surge in prices for steel made it clear that the industry was in a “super cycle.”
With the market at all-time highs, investors are torn between playing the reopening with shares like retailers or continuing to bet on Big Tech, which just reported blockbuster earnings.
States continued to relax pandemic restrictions amid the vaccine rollout. New York Gov. Andrew Cuomo announced that most capacity restrictions will be lifted across New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month.
Florida Gov. Ron DeSantis signed an executive order on Monday that immediately suspends the state’s remaining health restrictions.
Prices for 10-Year Treasurys inched higher, lowering yields to 1.59% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices moved ahead $1.16 to $65.65 U.S. a barrel.
Gold prices tumbled $16.70 to $1,775.10 U.S. an ounce.