US stocks slipped on Tuesday, as rising Treasury yields and concerns over the country’s debt profile weighed on investor sentiment. The benchmark S&P 500 ended six straight sessions of gains, snapping its winning streak.
President Donald Trump visited Capitol Hill to push for a sweeping tax-cut bill, which analysts estimate could add $3 trillion-$5 trillion to the federal government’s $36.2 trillion in debt. The Dow Jones Industrial Average fell 0.27%, while the S&P 500 lost 0.39% and the Nasdaq Composite dropped 0.38%.
Energy, communication services, and consumer discretionary stocks were among the sectors that declined. However, utilities, healthcare, and consumer staples equities made gains.
According to analysts, the rising yields in fixed-income markets have created a “huge bid” for bonds, which has pushed them back into favor. This is seen as a positive sign by some investors, who believe it could be a sign of a slowing economy.
Meanwhile, Home Depot reversed early gains after reporting first-quarter sales that beat Wall Street estimates. Tesla, however, rose 0.5% after Elon Musk reaffirmed his commitment to being CEO in five years.
The number of new highs and lows on the NYSE was relatively low, with 219 new highs and 33 new lows. The S&P 500 posted 19 new 52-week highs and no new lows, while the Nasdaq Composite recorded 59 new highs and 46 new lows.
Traders expect at least two 25-basis-point Fed rate cuts by the end of 2025, with some predicting the first cut could come as early as September. The yield on benchmark US 10-year notes rose to 4.481%.
Source: https://www.reuters.com/business/us-stock-futures-edge-down-ahead-commentary-fed-officials-2025-05-20