The Dow fell more than 675 points, or 2%, in late morning trading Tuesday, one day after stocks capped off their second straight month of declines to start the year. The Nasdaq and S&P 500 were also lower, although more modestly, falling 1.5% and 1.6% respectively.
Rising oil prices, which spiked 10% Tuesday to above $105 a barrel for the first time in more than seven years, are hurting sentiment. So is the rapid drop in long-term bond yields. The 10-year Treasury rate fell to 1.68%, the lowest level since early January.
Lower bond rates are bad news for financial firms, which tend to make more money from lending operations and other businesses when rates are higher. American Express (, )JPMorgan Chase ( and )Goldman Sachs ( were among the bigger losers in the Dow Tuesday. )
Chevron (, by contrast, was the Dow’s biggest gainer, rising 3%. The energy giant is benefiting from higher oil prices and the company also raised its target for stock buybacks this year. )
Retail stocks were also among the market’s winners Tuesday. Target and Kohl’s both reported stronger than expected earnings and solid outlooks for 2022. Target ( shares surged 12% on the news. )
Kohl’s ( stock was up 2% and Dow components )Walmart ( and )Home Depot ( rallied as well. )