U.S. equities fell on Tuesday as financials faced pressure from falling yields, while investors turned their eyes to a key House vote.
The Dow Jones industrial average fell around 50 points, with Goldman Sachs contributing the most losses. The S&P 500 fell 0.3 percent, with financials falling 0.7 percent to lead decliners.
U.S. Treasury yields traded mixed, with the benchmark 10-year note yield holding around 2.45 percent and the short-term two-year note yield trading around 1.28 percent.
U.S. stocks fell to a one-week low, while the dollar extended its slump to the longest since November as investors assessed the prospects for Donald Trump’s pro-growth policies gaining Congressional approval. The euro strengthened amid easing concern that a populist will prevail in France’s election.
Financial and industrial shares slumped, sending the S&P 500 Index toward its fourth straight decline. Congress is set to vote on a health-care bill Thursday, the passage of which could clear the decks for consideration of tax reform and increases in infrastructure spending. The euro strengthened after centrist Emmanuel Macron was widely judged to have come out on top in a French debate. Developing-nation equities extended a winning streak to eight days.
Trump met with House Republicans Tuesday morning to rally support for the repeal of Obamacare as investors look for signs that his plans to cut corporate taxes and boost spending will move forward. The dollar is on its longest losing streak since November after the Federal Reserve’s dovish message on the speed of monetary tightening last week. A raft of Fed officials speak this week, with investors looking for clues on the timing of future hikes.
Bloomberg
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