S&P 500 slips Tuesday as momentum stalls: Live updates

The S&P 500 slipped Tuesday as the momentum seen in the previous session fizzled, and declines in bank shares offset gains in tech names.

The broader market index edged 0.3% lower while the tech-heavy Nasdaq Composite hovered near flat. The Dow Jones Industrial Average lagged, falling 182 points, or 0.5%.

Several regional and larger bank fell after S&P Global cut credit ratings and revised its outlook for multiple U.S. banks on Monday, citing “tough” operating conditions. The financial sector was recently down 0.8%, making it the worst-performing sector of the S&P 500. KeyCorp and Comerica dropped more than 3.5% each. Big bank JPMorgan Chase also fell 1.9%.

Dick’s Sporting Goods and Macy’s fell 24% and 13%, respectively to lead the SPDR S&P Retail ETF lower. On the other hand, major tech-related names Netflix and Alphabet climbed.

Tuesday’s moves come as Wall Street keys on the bond market, a day after the benchmark 10-year Treasury yield hit its highest level since 2007. The 10-year was mostly flat on Tuesday.

“I think [the market] is kind of wavering right now as the 10-year yield is hovering right around those October highs,” Adam Turnquist, chief technical strategist at LPL Financial said. “We’re watching for an official breakout on the 10-year … I think if we start moving higher, that’s certainly a warning sign for maybe a little bit deeper pullback in equity markets.”

While Turnquist said he is not bearish on stocks, he thinks “we’re in the pullback phase of a bull market.” The strategist named the industrial sector as his top pick.

Crossmark Global Investments’ Victoria Fernandez similarly expects a continuing pullback in the market, which she said will be influenced by climbing yields and a more cautious consumer.

“I think we’re gonna see higher yields bite a little bit,” said Fernandez, the firm’s chief market strategist. “Now that we’re through earnings, it’s the macro story that’s going to be driving a lot of what we see in market volatility, and positive macro stories are really a double edged sword because all that does is tell the Fed that their financial conditions are not tight enough.”