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Wall Street\u2019s momentum stalled Tuesday as investors pulled back from tech stocks and rising bond yields renewed pressure on equities.<\/p>\n
The Dow Jones Industrial Average fell 114.83 points, or 0.27%, while the S&P 500 dipped 0.39%, ending a six-day winning streak.\u00a0<\/p>\n
The Nasdaq Composite slid 0.38% as chipmakers and megacaps retreated, led by losses in Nvidia, AMD, Meta, Apple, and Microsoft. The tech sector was the S&P 500\u2019s worst performer, falling roughly 0.9%.<\/p>\n
The pullback follows a five-week rebound that lifted the S&P 500 more than 20% off its April low, driven by optimism around tariff de-escalation following President Trump\u2019s earlier tariff announcement. The index is now about 3% below its all-time high.<\/p>\n
\u201cWe\u2019ve had the swoon related to tariffs, the furious rally, and now we\u2019re awaiting clarification,\u201d said<\/a> Bill Northey of U.S. Bank Wealth Management. \u201cIt\u2019s optimism without clarity.\u201d<\/p>\n Meanwhile, bond markets added to the unease. The 10-year Treasury yield climbed to 4.48%, while the 30-year briefly topped 5% for the second straight day\u2014its highest since November 2023.\u00a0<\/p>\n The rise follows Moody\u2019s decision to downgrade U.S. debt, citing ballooning deficits and rising interest expenses.<\/p>\n <\/p>\n Analysts say yields at or above 4.5% tend to challenge equity valuations. \u201cIf the 30-year is breaking out, does that mean the rest of the curve is next?\u201d said<\/a> Manulife\u2019s Matthew Miskin.\u00a0<\/p>\n Morgan Stanley\u2019s Michael Wilson noted that equities have consistently faced valuation pressure when the 10-year yield breaches 4.5%.<\/p>\nEquity valuation challenges<\/h2>\n