Tech stocks were hit for a second-straight session on Tuesday as a spike in interest rates made that sector less attractive.
The Dow jumped 194 points due to the strength of bank and energy stocks. The S&P 500 crept 7 points higher. The tech-dominated Nasdaq fell 79 points.
Max Wolff is CEO of Systematic Ventures believes stock investors are starting to take their cue from the bond market.
"So if on the net there's a little bit less buying because you have a slightly less dovish Fed chief, if on the net you have slightly higher persistent inflation because you're not going to solve energy issues in the short term, and if on the net the government's going to need to be in the market borrowing more, then you have all major net structural influences pushing to a slight increase in the yields."
With an eye on inflation, President Biden coordinated a release of strategic oil reserves in the U.S. and other countries in hopes of easing pain at the pump. But the move, which was widely telegraphed, only temporarily pushed oil prices lower. Crude oil ended the day up by more than two percent to $78.50 a barrel.
There were some high-profile misses on the earnings front.
Best Buy warned that sales during the crucial holiday shopping quarter will likely be hurt by supply shortages for electronics and other big ticket items. Shares of the electronics chain tumbled 12 percent.
Zoom had a rough day as investors frowned upon the video conference company's weakest-ever quarterly sales growth. The stock, a darling during the health crisis, touched a 17-month low.