Stocks wobbled between small gains losses on Wall Street in morning trading Tuesday as investors shifted to a more cautious mood a day after the market reached its most recent record high.
Technology stocks were the biggest drag on the broader market in a reversal from a day earlier.
The S&P 500 index rose 0.1% as of 10:17 a.m. Eastern. Stocks within the index were nearly evenly split between gainers and losers. The losses in tech stocks were offset by gains from companies that are depending on continued economic growth to recover. Gap rose 3.5%, while Wynn Resorts rose 3.2%.
The Dow Jones Industrial Average was little changed. The Nasdaq rose 0.1%. Bond yields fell. The yield on the 10-year Treasury slipped to 1.68% from 1.72% late Monday.
Much of the churn within the market is occurring as Wall Street assesses the health and speed of the economic recovery. Investors have been weighing concerns about higher inflation as the economy grows, along with expectations that retail and other service sector stocks will make solid gains as the world moves past the pandemic and returns to some semblance of normalcy.
The International Monetary Fund expects global economic growth to accelerate this year as vaccine distribution ramps up and the world rebounds. The 190-country lending agency said it expects the world economy to expand 6% in 2021, up from the 5.5% it had forecast in January. That would be the fastest expansion in IMF records dating back to 1980.
Swiss bank Credit Suisse said it expects a $4.7 billion loss related to a default of by a U.S. hedge fund. Two top executives are leaving the bank. Credit Suisse also suspended a stock buyback program and cut its dividend. Credit Suisse fell less than 1%.
In Europe, France’s CAC 40 climbed 0.6%, while Germany’s DAX rose 0.9% and Britain’s FTSE 100 rose 1.5%. Markets in Asia were mixed.