U.S. technology stocks were lower Tuesday as Treasury yields extended a rise, dragging down major stock indexes. Energy shares rallied, however, as crude bounced even though the White House announceed the U.S. would release crude from its Strategic Petroleum Reserve in a coordinated move with other countries in an effort to lower gasoline prices.
What’s driving the market? Tech stocks attempted an early rebound, but were unable to maintain upside momentum, after a slide in the previous session. Monday’s late-day weakness for Wall Street was tied by some analysts to expectations that Federal Reserve Chairman Jerome Powell — nominated to a second term by President Joe Biden — could tighten monetary policy faster than Lael Brainard, who was appointed Vice Chair but had also been in the running for the top job.
The yield on the 10-year Treasury note TMUBMUSD10Y, 1.664% rose 1.8 basis points to 1.648%, after yields across the board rose at the fastest daily rate in nearly two weeks on Monday.