FINANCIAL MARKETS

NEW YORK—U.S. stocks declined Tuesday as big technology companies and smaller firms gave up some of their recent gains. Stocks hit record highs over the previous two days as the Republican-backed tax bill made its way through Congress. Smaller companies in particular have surged because investors feel they will be major beneficiaries of lower corporate tax rates. High-dividend stocks dropped as bond yields rose. Investors like the proposed tax cut 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 low-income families. After the close of trading, House Republican leaders said they will have to hold another vote on the bill Wednesday because a few provisions violate Senate rules. The Standard & Poor’s 500 index lost 8.69 points, or 0.3 percent, to 2,681.47. The Dow Jones industrial average shed 37.45 points, or 0.2 percent, to 24,754.75. The Nasdaq composite gave up 30.91 points, or 0.4 percent, to 6,963.85. The Russell 2000 index of smaller-company stocks fell 12.17 points, or 0.8 percent, to 1,536.75. It climbed almost 3 percent over the previous two days. Energy companies edged higher along with the price of oil. Benchmark U.S. crude rose 30 cents to $57.46 a barrel in New York while Brent crude, used to price international oils, added 39 cents to $63.80 a barrel in London. Wholesale gasoline picked up 2 cents to $1.70 a gallon. Heating oil gained 1 cent to $1.94 a gallon. Natural gas sank 5 cents to $2.69 per 1,000 cubic feet.