US close: S&P 500 rally runs out of steam as bond yields rise

(Sharecast News) - US stocks fell on Tuesday, with the S&P 500 snapping a six-day winning streak as bond yields crept higher, with gloomy comments from JPMorgan's boss dampening the mood.

During the bank's investor event in New York, JPMorgan chief executive Jamie Dimon said American asset prices are "still [...] kind of high".

He said that investors are underestimating the impact of Donald Trump's trade tariffs which remain at a "pretty extreme" level, and that markets were showing "an extraordinary amount of complacency".

The Dow finished 0.3% lower while the S&P 500 and Nasdaq both fell 0.4% - though a late rally meant that all three indices finished firmly above their intraday lows.

Still, this was the first session since 9 May that the S&P 500 has closed in the red, with the index still up more than 19% since hitting a year-to-date low on 8 April.

Markets were still digesting Moody's decision on Friday to cut its rating on US government debt from the highest rating Aaa to Aa1 as a result of the country's eye-watering $36trn debt pile and growing interest costs. The downgrade means that none of the three major credit ratings agencies now rate US debt as the highest quality.

While stocks held up well on Monday as bond yields held steady, a 7.3 basis-point jump in the 10-year US Treasury yield to 4.527% early on Tuesday caused some concern, with yields hitting levels not seen since February. By the close of trade on Wall Street, yields were trading at 4.488%, up 3.4bp on the day.

Market movers

Home Depot erased earlier gains to finish lower after mixed quarterly earnings report. However, it was likely comments from CFO Richard McPhail that were steering sentiment after he told CNBC that the DIY retailer wouldn't need to lift prices as a result of tariffs.

"Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio," McPhail said in a CNBC interview.

Uber also fell after rising early on following the announcement of a partnership with Waymo to bring autonomous ridesharing to Atlanta.

Drug companies Moderna and Pfizer were making gains after the FDA's new guidance on future Covid-19 vaccine boosters was taken positively.

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $321.58 1.80%

Boeing Co. (BA) $207.67 1.18%

Merck & Co. Inc. (MRK) $77.96 0.96%

Nike Inc. (NKE) $62.56 0.77%

Johnson & Johnson (JNJ) $153.66 0.77%

Procter & Gamble Co. (PG) $165.65 0.53%

JP Morgan Chase & Co. (JPM) $265.68 0.30%

Salesforce.Com Inc. (CRM) $288.06 0.15%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $29.79 -1.06%

American Express Co. (AXP) $296.17 -1.05%

Goldman Sachs Group Inc. (GS) $606.69 -0.94%

Apple Inc. (AAPL) $206.86 -0.92%

Chevron Corp. (CVX) $137.27 -0.88%

Caterpillar Inc. (CAT) $349.49 -0.87%

Cisco Systems Inc. (CSCO) $63.42 -0.78%

Home Depot Inc. (HD) $377.05 -0.61%

International Business Machines Corporation (CDI) (IBM) $266.95 -0.54%

Intel Corp. (INTC) $21.27 -0.51%

S&P 500 - Risers

Dollar Tree Inc (DLTR) $90.62 4.63%

Dollar General Corp (DG) $102.20 4.09%

Humana Inc. (HUM) $255.31 3.22%

Dominion Energy Inc. (D) $57.92 3.20%

Eversource Energy (ES) $65.55 3.18%

Regeneron Pharmaceuticals Inc. (REGN) $614.79 3.06%

Gilead Sciences Inc. (GILD) $109.11 2.78%

Newmont Corporation (NEM) $52.30 2.69%

Celanese Corp. (CE) $53.72 2.38%

Incyte Corp. (INCY) $65.30 2.34%

S&P 500 - Fallers

Helmerich & Payne Inc. (HP) $16.11 -4.22%

AES Corp. (AES) $11.24 -4.01%

Norwegian Cruise Line Holdings Ltd (NCLH) $18.17 -3.91%

United Airlines Holdings Inc (UAL) $76.33 -2.91%

Wynn Resorts Ltd. (WYNN) $93.77 -2.88%

Copart Inc. (CPRT) $61.62 -2.85%

Alexandria Real Estate Equities Inc. (ARE) $72.18 -2.53%

Tractor Supply Company (TSCO) $51.60 -2.48%

Delta Airlines Inc. (DAL) $49.98 -2.36%

MGM Resorts International (MGM) $32.92 -2.29%

Nasdaq 100 - Risers

Vodafone Group Plc ADS (VOD) $10.39 7.78%

Dollar Tree Inc (DLTR) $90.62 4.63%

Regeneron Pharmaceuticals Inc. (REGN) $614.79 3.06%

Gilead Sciences Inc. (GILD) $109.11 2.78%

Incyte Corp. (INCY) $65.30 2.34%

Henry Schein Inc. (HSIC) $73.13 1.80%

NetEase Inc. Ads (NTES) $120.99 1.59%

Illumina Inc. (ILMN) $84.21 1.52%

Vertex Pharmaceuticals Inc. (VRTX) $447.18 1.48%

Take-Two Interactive Software Inc. (TTWO) $237.50 1.21%

Nasdaq 100 - Fallers

Trip.com Group Limited (TCOM) $63.38 -5.54%

Wynn Resorts Ltd. (WYNN) $93.77 -2.88%

Marriott International - Class A (MAR) $267.34 -2.14%

Fiserv Inc. (FI) $165.87 -1.93%

Seagate Technology Plc (STX) $106.97 -1.90%

Expedia Group Inc. (EXPE) $162.52 -1.79%

American Airlines Group (AAL) $11.65 -1.77%

Alphabet Inc. Class A (GOOGL) $163.98 -1.54%

Alphabet Inc. Class C (GOOG) $165.32 -1.52%

Fastenal Co. (FAST) $81.92 -1.49%