The U.S. stock market took a downward turn on Tuesday, with the financial sector leading the decline as investors awaited key earnings reports later in the week. The Nasdaq Composite, S&P 500, and Dow all opened in positive territory but quickly reversed course, ending the day in the red.
Of the 11 S&P sectors, six were in negative territory, with financials taking the biggest hit ahead of quarterly reports from major players like JPMorgan, Wells Fargo, and Citi. Market participants were also cautious ahead of the latest consumer inflation data set to be released on Wednesday.
Small business optimism hit its lowest levels since December 2012, with inflation being reported as the top concern for Main Street. Wells Fargo’s Sam Bullard noted that price pressures and finding quality labor were the primary issues facing small businesses in March.
In the fixed-income markets, Treasury yields were lower, with a $58 billion 3-year note auction that tailed by 4 basis points. The longer-end 30-year and 10-year yields were both down 5 basis points each, while the shorter-end 2-year yield was down 4 basis points.
Active stocks in the market included Moderna, which was the top gainer on the S&P 500 after releasing positive data on a cancer treatment study. Boeing slipped after reporting a 55% year-over-year drop in March aircraft deliveries, and Norfolk Southern gained after reaching a $600 million settlement over a freight train derailment.
Overall, the market showed signs of caution and volatility as investors awaited key economic data and earnings reports later in the week.
