The Dow Jones Industrial Average gave up early gains Wednesday even though investors piled back into economically sensitive sectors on bets that the U.S. economy will continue to recover.
The index of blue-chip stocks ended the day near flat, down less than 0.1%, as companies ranging from American Express to Chevron to Caterpillar showed relative strength.
The S&P 500 however declined 0.6%, adding to losses it endured Tuesday. The Nasdaq Composite Index fell more sharply, its losses accelerating in afternoon trading. The technology-heavy index had dropped 2% by the 4 p.m. ET close of trading.
Markets have seesawed this week as investors have continued to assess the implications of a recent climb in bond yields, which, despite edging down this week, surpassed 1.7% this month for the first time in more than a year. Money managers are also assessing the valuations on stocks after the major indexes climbed over 70% since the pandemic-fueled rout last March.
“We are now one year into this rally: We’ve seen a massive decline and a massive rally, and my sense is that markets are just going to pause for breath from here,” said Brian O’Reilly, head of market strategy for Mediolanum International Funds. “Gains are going to be much harder to come by for the rest of the year.”