Investors pulled back on stocks Tuesday, as the Federal Reserve began its two-day policy meeting and yields crept higher in the benchmark 10-year U.S. Treasury bond.
The S&P 500 (SPX) dropped from a record high, turning lower for the first time in seven trading sessions primarily as a result of a drop in energy and industrial stops. SPX lost 14 points, or 0.37%, trading near 3954.
The Dow Jones Industrial Average (DJIA) also fell from its record, trading off 154 points or 0.47% at 32,793.
The Nasdaq Composite Index (COMP) was off 0.44%, losing 59 points at 13,400.
The Russell 2000 Index (RUT) fell the most, losing 2.01% or 47 points, to trade at 2312.
Stocks moved lower as the yields on 10-year Treasuries rose slightly to 1.62%. Investors are contemplating whether or not the Federal Reserve will hike interest rates in the coming months. Gold held steady at $1731 an ounce.
Benchmark crude oil (CLJ21) fell $0.67 per barrel for a loss of more than 1% to trade at $64.70 per barrel.
Meanwhile, bitcoin fell off its high of $61,000 to trade near $54,000.
Investors are contemplating how the global economy fares as the world emerges from the depths of the coronavirus pandemic. In Europe, the Stock 600 Index advanced nearly 1% to 426, the highest jump in more than a week. Investors shrugged off news that AstraZeneca was being suspended amid fears of blood clots. The company insists there is no correlation between the shot and the blood clots, however regional European health ministers will meet to discuss the vaccine’s future. Meanwhile, the euro dipped 0.2% to $1.19.
In European bond markets, the yield on Germany’s 10-year bond fell to less than one basis point to -0.34%. Just a reminder: that is a negative sign in from of the yield. Meaning an investor is PAYING the German government to hold his or her money.
In Asia, markets notched higher in Japan and China. The Nikkei 225 Index gained 0.52% closing at 29,921 while the Shanghai Composite Index gained 0.78% to close at 3,446.
The Japanese yen strengthened to 108.97 per dollar, a gain of 0.1%.