S&P 500 flat as higher bond yields counter tech optimism
SPY•The S&P 500 traded flat as rising bond yields offset gains in AI-related stocks; the 10-year Treasury yield reached 5.078%, near its highest level since 2007. CarMax rose 7.8% after reporting higher second-quarter profit and revenue.
1. Yields weigh on stocks
The S&P 500 was nearly unchanged on Tuesday as higher government bond yields weighed on risk sentiment and countered gains in AI-related stocks. The 10-year Treasury yield climbed to 5.078%, near its highest level since 2007. The Dow fell 0.17%, while the Nasdaq Composite traded flat.
2. Technology and AI focus
Chipmakers helped offset declines, with the Philadelphia semiconductor index up 2.1%. Anthropic’s IPO prospectus showed sharply higher growth over the past year and wider losses; the company is targeting a valuation above $2 trillion. At least six Federal Reserve officials, including New York Fed President John Williams, were set to speak Tuesday.
3. Company movers
CarMax rose 7.8% after reporting higher second-quarter profit and revenue. Fair Isaac fell 23.1% after the Federal Housing Finance Agency director said Fannie Mae and Freddie Mac would move to a single pricing grid.
