US close: Stocks slip as government bond yields spike

(Sharecast News) - A sell-off in the bond market saw US stocks fall again on Tuesday, with the S&P 500 and Nasdaq continuing to pull back from last week's record highs as investors exercise caution ahead of Nvidia's all-important earnings.

The Dow and S&P 500 both finished 0.7% lower, while the Nasdaq lost 0.8%.

First-quarter results from semiconductor titan Nvidia will be released after markets close on Wednesday, with expectations sky high for the company to impress, given it is partly responsible much of Wall Street's recent gains over the past year - with a market cap of $5.39trn at the close.

Nevertheless, stock has dropped over 6% over the past three sessions alone, as investors chose to book profits following a 70% surge in the shares over the past 12 months. Others in the chip sector, such as Intel, Broadcom, Micron Technology and AMD, were also weaker.

Also on tap during Wednesday's session will be the minutes of the latest Federal Reserve policy meeting, which will come amid rising speculation that the central bank will soon have to act to fight growing inflationary pressures.

Interestingly, Donald Trump said on Tuesday that he'll allow incoming Fed chair Kevin Warsh to "do what he wants to do" with interest rates - in stark contrast to Warsh's predecessor Jerome Powell whom he criticised for not lowering rates quickly enough. Warsh is set to be sworn in as the head of the central bank on Friday.

Rising speculation that rates will soon increase has driven government bond lower in recent days, with the yield on 10-year US Treasury note up 7.3 basis points at 4.666%, its highest since the start of 2025. The 30-year US Treasury yield was up 4.5bp at 5.172%, hitting levels not seen since 2007.

"The oil price may have fallen on Donald Trump's announcement that he'd delayed planned strikes on Iran, but it's still above $110 a barrel and that stickiness is being felt at the petrol pump," says Danni Hewson, head of financial analysis at AJ Bell.

"Markets have struggled to push past their nervousness about the path of the economy and expectation of further rate hikes, with Wall Street particularly under pressure today as investors Stateside wait for an update from both the Federal Reserve and chip giant Nvidia."

In equity news, Alphabet was in the red on reports that Google and Blackstone plan to launch a new AI cloud company backed by an initial $5bn equity investment, as demand for computing capacity continues to surge across the AI industry.

Even United Airlines fell despite saying it expects an uptick in passenger numbers this summer. The carrier projected 53m travellers over the peak summer period, up 3m from last year.

Home Depot shares edged higher after the US DIY retailer released with its first-quarter results. Profits fell slightly on last year as macro pressures limited homeowner willingness to spend on home-improvement projects, though adjusted EPS of $3.43 came in 2 cents ahead of consensus forecasts.

Dow Jones - Risers

Verizon Communications Inc. (VZ) $47.74 2.10%

Amgen Inc. (AMGN) $330.75 1.94%

Merck & Co. Inc. (MRK) $114.24 1.49%

Coca-Cola Co. (KO) $81.92 0.89%

Home Depot Inc. (HD) $302.44 0.88%

Chevron Corp. (CVX) $197.25 0.58%

Johnson & Johnson (JNJ) $230.00 0.47%

Walmart Inc. (WMT) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $115.38 -3.15%

Intel Corp. (INTC) $110.80 -3.12%

Boeing Co. (BA) $215.01 -2.54%

Dow Chemical Co. (DOW) $37.74 -2.13%

3M Co. (MMM) $149.36 -2.08%

Goldman Sachs Group Inc. (GS) $928.74 -1.86%

JP Morgan Chase & Co. (JPM) $295.70 -1.67%

Walt Disney Co. (DIS) $102.29 -1.56%

American Express Co. (AXP) $309.31 -0.94%

Visa Inc. (V) $329.91 -0.82%

S&P 500 - Risers

Ipg Photonics Corp. (IPGP) $113.33 10.35%

Cognizant Technology Solutions Corp. (CTSH) $50.88 6.58%

Apache Corp. (APA) $40.91 5.26%

CH Robinson Worldwide Inc (CHRW) $173.02 4.85%

Costco Wholesale Corp. (COST) $1,094.32 4.49%

Fortinet Inc. (FTNT) $127.64 4.45%

Gen Digital Inc. (GEN) $24.32 4.31%

Intuitive Surgical Inc. (ISRG) $441.58 3.96%

Jack Henry & Associates Inc. (JKHY) $140.50 3.93%

Paychex Inc. (PAYX) $94.48 3.48%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Applied Materials Inc. (AMAT) $406.91 -7.42%

Lam Research Corp. (LRCX) $273.38 -7.01%

Micron Technology Inc. (MU) $698.74 -6.77%

Akamai Technologies Inc. (AKAM) $141.34 -6.75%

Seagate Technology Plc (STX) $733.35 -6.66%

QUALCOMM Inc. (QCOM) $195.61 -5.89%

FMC Corp. (FMC) $12.76 -5.83%

Sl Green Realty Corp. (SLG) $40.57 -5.50%

United Airlines Holdings Inc (UAL) $89.12 -5.47%

Nasdaq 100 - Risers

Cognizant Technology Solutions Corp. (CTSH) $50.88 6.58%

Liberty Global plc Series A (LBTYA) $12.15 5.29%

Liberty Global plc Series C (LBTYK) $11.89 4.85%

Costco Wholesale Corp. (COST) $1,094.32 4.49%

Gen Digital Inc. (GEN) $24.32 4.31%

Intuitive Surgical Inc. (ISRG) $441.58 3.96%

Paychex Inc. (PAYX) $94.48 3.48%

T-Mobile Us, Inc. (TMUS) $193.42 3.41%

O'Reilly Automotive Inc. (ORLY) $91.92 3.36%

Autodesk Inc. (ADSK) $244.16 3.19%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Applied Materials Inc. (AMAT) $406.91 -7.42%

Lam Research Corp. (LRCX) $273.38 -7.01%

Micron Technology Inc. (MU) $698.74 -6.77%

Seagate Technology Plc (STX) $733.35 -6.66%

QUALCOMM Inc. (QCOM) $195.61 -5.89%

DENTSPLY Sirona Inc. (XRAY) $9.74 -4.37%

KLA-Tencor Corp. (KLAC) $1,740.58 -4.33%

Biomarin Pharmaceutical Inc. (BMRN) $49.81 -4.12%

Asml Holdings N.V. (ASML) $1,459.44 -3.82%