Dow Tumbles As US Stocks Retreat Again

New York, (UrduPoint / Pakistan Point News - 12th May, 2021 ) :Wall Street stocks sagged for a second straight day Tuesday, although tech shares finished well above their session lows following bargain-hunting.

Analysts said lingering concerns about excessive equity valuations and prospects for resurging inflation put downward pressure on share prices. The yield on the 10-year US Treasury rose back above 1.6 percent, a move typically reflecting concerns about rising prices.

Industrial companies that have been strong this year, including Caterpillar, Chevron and 3M, all dropped more than one percent.

But the tech-rich Nasdaq Composite Index, which has underperformed the other two major indices in 2021, benefited from investors "buying the dip in growth stocks," according to Briefing.com.

The Dow Jones Industrial Average dropped 1.

4 percent to end the day at 34,269.16, its worst session since late February.

The broad-based S&P 500 shed 0.9 percent to close at 4,152.10, while the Nasdaq slipped 0.1 percent to 13,389.43.

Among individual companies, Tesla dropped 1.9 percent as analysts pointed to news of lower auto sales in China in April and a report from Reuters suggesting the electric car company was halting its planned expansion in the country.

Meanwhile, L Brands fell 1.8 percent after it announced it would split Bath & Body Works and Victoria's Secret into separate companies.

"The spin-off will enable each company to maximize management focus and financial flexibility to thrive in an evolving retail environment and deliver profitable growth," the company said.