Stocks slip as bond yields rise
A minor sell-off on Wall Street as investors kept an eye on interest rates for the 10-year note, which touched a 14-month high on Tuesday.
High-flying growth stocks were hit again, which left the Dow, the S&P 500 and the Nasdaq all modestly lower by the closing bell.
Tim Bray, a fund manager at GuideStone Capital Management, wasn't shaken by Tuesday's market action.
"I think the mood of the market is still up, optimism, you know, investors are shying away from bonds. Yes. You've seen a little bit of a pullback in equities, but I still think it's an optimistic market. I still think it's a buy the dip market. We still see a lot of growth coming. So, you know, it's still positive versus negative, I would say, today."
Bank stocks recovered as investors viewed the fallout from the problems at Archegos Capital hedge as limited.
Wells Fargo came out and said that while it had a relationship with the troubled hedge fund it no longer had any exposure and did not experience any losses. That was enough to send shares of Wells Fargo up nearly 3 percent.
Consumer moods have been lifted by the vaccine rollout. Consumer confidence hit its highest since the health crisis began a year ago, according to a March survey by the Conference Board. The improving labor market and the good vibes from President's Biden's $1.9 trillion economic relief plan are also bolstering confidence. With consumer spending responsible for two-thirds of all economic activity - that bodes well for the economic outlook.
