FINANCIAL MARKETS
Technology stocks led a broad slide in U.S. stocks Tuesday after a day of mostly choppy trading. Phone and utilities companies were among the big decliners after a sell-off in bonds sent yields sharply higher. Banks bucked the broader market decline amid heightened expectations of rising interest rates. Oil prices rose for the fourth straight day. Late-afternoon developments in Washington helped put investors in a selling mood.
Republican leaders in the Senate decided to delay a vote on a health care overhaul bill until after the July 4 recess. The Standard & Poor’s 500 index fell 19.69 points, or 0.8 percent, to 2,419.38. The Dow Jones industrial average slid 98.89 points, or 0.5 percent, to 21,310.66. The Nasdaq composite lost 100.53 points, or 1.6 percent, to 6,146.62. The Russell 2000 of small-company stocks gave up 13.10 points, or 0.9 percent, to 1,403.54.
Bond prices fell. The 10-year Treasury yield rose to 2.20 percent from 2.13 percent late Monday. The bond sell-off was triggered early Tuesday as investors reacted to remarks from European Central Bank President Mario Draghi, who expressed optimism over the future of the economy of the 19-country eurozone. And while Draghi did not say the ECB was ready to rein back its stimulus measures, investors took his remarks as a hint that a change of policy could be coming in the next few months. Investors also weighed new data on U.S. home prices and consumer confidence. The S&P’s CoreLogic Case-Shiller 20-city home price index shows home prices climbed 5.7 percent nationwide in April. The latest gain follows price increases of 5.9 percent in March and February. Separately, the Conference Board reported that its consumer confidence index rose to 118.9 this month from 117.6 in May. Alphabet, Google’s parent company, slid 2.5 percent after the European Union slapped the online search giant with a $2.7 billion fine. The EU alleges that the company breached antitrust rules with its online shopping service. Alphabet said it is considering an appeal. Alphabet shares fell $24 to $948.09. Oil and gas futures notched gains Tuesday. Benchmark U.S. crude gained 86 cents, or 2 percent, to settle at $44.24 per barrel in New York. Brent, the international standard, added 82 cents, or 1.8 percent, to close at $46.65 per barrel in London. In other commodities trading, wholesale gasoline rose 2 cents to $1.46 per gallon. Heating oil also added 3 cents to $1.41 per gallon. Natural gas gained a penny to $3.04 per 1,000 cubic feet.