Stocks retreat from record highs

After big gains over the last two days, U.S. stocks declined Tuesday after the House of Representative approved the Republicanbacked tax bill, which would lower corporate tax rates.

Big technology companies gave up some of their recent gains, and so did smaller companies, which have surged because investors feel they will be major beneficiaries of the reduced corporate tax rate. High-dividend stocks dropped as bond yields rose. U.S. indexes had jumped to record highs over the last two days as Republicans appeared to shore up enough support to make sure the bill passes.

Investors like that because it would boost corporate profits and likely raise stock prices along with it. The bill would initially cut taxes for most Americans but by 2027 would increase tax bills for most.

While stocks weren't doing much Tuesday, bond prices fell. The yield on the 10-year Treasury note rose to its highest price in more than a month, to 2.45 percent from 2.39 percent late Monday.

Invesco Global Market Strategist Kristina Hooper said two factors are sending bond yields higher: investors are selling bonds to buy stocks as the tax bill appears likely to pass, and they also feel the bill may contribute to inflation.

The tax bill passed through the House, largely along party lines ahead of a Senate vote scheduled for Tuesday night. The $1.5 trillion package would cut the corporate tax rate to 21 percent from 35 percent, and would slash taxes for the wealthy, with smaller cuts for middle-and lowincome families.