Stock market today
The US stock market closed lower today. All major US stock indices declined, S&P 500 underperformed and Nasdaq outperformed. How did the US stock market close today?
S&P 500: 4,127.83,-35.46(-0.85%)
Dow 30: 34,060.66,-267.13(-0.78%)
Russell 2000: 2,210.88,-16.24(-0.73%)
Stock market news
“Stocks dipped on Tuesday, with the Nasdaq erasing earlier gains to join the S&P 500 and Dow in the red.
The S&P 500 drifted lower and headed for a second straight day of declines. The Nasdaq also sank, and the Dow shed more than 100 points, or 0.3%. Walmart (WMT) shares gained more than 2.5% after the company posted first-quarter earnings that handily exceeded estimates and raising full-year guidance. However, Home Depot (HD) and Macy’s (M) shares declined even after both companies topped Wall Street’s first-quarter earnings estimates.
Technology stocks have fluctuated between steep gains and losses over the past several weeks, with concerns over inflation and higher rates threatening to weigh on valuations of high-growth stocks. The information technology sector has increased by just 3.4% for the year-to-date through Monday’s close, far underperforming the broader index’s 10.8% gain over that time period and coming in as the worst performer of the index’s 11 sectors. Last year, the information technology sector was the biggest outperformer.
“Markets have basically made inflation the battleground issue for determining whether or not it’s really this rotation trade that’ll win out the rest of this year, or whether it’s the tech and growth stocks that won out last year,” James Liu, Clearnomics founder and CEO, told Yahoo Finance. “You’ve seen this bounce back and forth throughout the course of this year.”
“Right now what you’re seeing with inflation are those base effects. Everyone is calling those transitory. You’re seeing supply and demand issues in certain sectors,” he added. “But what we’re really not seeing is what we would usually call monetary inflation, which is what you saw in the 1970s and 1980s, and that’s really where big inflation protection in your portfolio really comes into play. So for us, right now we think it pays for investors to stay invested and to basically look out for the second half of this rotation trade for this rest of this year.”