US stocks closed mixed with tech stocks dragged by rising bond yields

Traders work through the closing minutes of trading Tuesday on the New York Stock Exchange floor on February 25, 2020 in New York City.

US stocks closed mixed on Tuesday as technology shares dragged lower amid rising Treasury yields.  

The S&P 500 and Dow Jones Industrial Average closed higher, while the tech-heavy Nasdaq composite edged lower. 

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

“The Nasdaq is getting punished as investors scale down their mega-cap tech bets as margin worries grow and Treasury yields continue to rise,” Edward Moya, senior equity analyst at Oanda, said in a note Tuesday.

Bond yields continued to rise on Tuesday, with the 10-year Treasury note yield up marginally to 1.672%, well above a recent low of 1.418% touched in earlier in November on expectations the Fed will hike interest rates as soon as June 2022.

Zoom plunged Tuesday as much as 17% after the video teleconferencing firm announced an expected revenue slowdown as the pandemic eases. Tech shares are also more sensitive to higher interest rates than others

Dollar Tree rose 12% after the discount chain announced that its new price point will be $US1 ($AU1).25 ($AU2), departing from the everything-for-$US1 ($AU1) philosophy the retailer has employed for the past three decades.

Best Buy fell as much as 17% after the electronics retailer said an increase in organized retail theft is hurting its profit margins.

In the SPAC market, Manscaped, a men’s grooming startup backed by Channing Tatum, announced it is going public by merging with blank-check firm Bright Lights Acquisition Corp in a deal valuing the company at $US1 ($AU1) billion. 

Elsewhere, bitcoin is up 2.10% to $US57,462 ($AU79,617), but is still roughly 16% lower from its record high of above $US68,600 ($AU95,050) on November 10.

US regulators meanwhile said they plan to issue guidance next year on the role of traditional banks in crypto to promote consumer protection and compliance.

Oil prices surged following plans by the Biden administration to release oil from the country’s emergency stockpile to combat the high gas prices that consumers are paying. 

West Texas Intermediate crude oil rose as much as 2.54% to $US78.70 ($AU109) per barrel. Brent crude, oil’s international benchmark, jumped 3.51% to $US82.50 ($AU114) per barrel.

Gold fell 0.99% to $US1 ($AU1),791.07 per ounce, breaking below the $US1 ($AU1),800 level.