US stocks fall as rising bond yields pressure tech amid easing banking sector fears

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US stocks fall as rising bond yields pressure tech amid easing banking sector fears
Traders work on the floor at the New York Stock Exchange.Andrew Kelly/Reuters
  • US stocks fall Tuesday, leaving the S&P 500 lower after three days of gains.
  • The 2-year Treasury yield pushed back above 4%, pressuring tech stocks.
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US stocks finished in the red Tuesday as tech shares bore the brunt of rising bond yields amid easing turmoil within the banking sector.

The tech-concentrated Nasdaq Composite put in the worst performance among key indexes. The S&P 500 fell for the first time in four sessions, with the Information Technology sector a main drag.

Tech stocks were stung by a rise in the 2-year Treasury yield, pushing above 4% for the first time in nearly a week. Higher yields slice into the value of future profit for tech and other growth companies.

Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:

Bond yields rose as some measure of calm settled over the banking industry after developments on Monday. First Citizens reached a deal to acquire $72 billion of assets of collapsed Silicon Valley Bank for a $16.5 billion discount. Also easing fears was a Bloomberg report over the weekend that the government may offer more support to banks partially to help First Republic further stabilize.

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But investors, lawmakers, and regulators are still assessing the fallout from this month's implosion of SVB.

"A review will consider whether the supervisory warnings were sufficient and whether supervisors had sufficient tools to escalate," Michael Barr, the Fed's vice-chair for supervision, told the Senate Banking Committee on Tuesday. "I anticipate the need to strengthen capital and liquidity standards for firms over $100 billion," which would have included SVB.

Barr called SVB a "textbook case of mismanagement."

Here's what else is happening today:

In commodities, bonds, and crypto:

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