Fri, 03 Dec 2021

NEW YORK, Nov. 23 (Xinhua) -- U.S. stocks ended mixed on Tuesday amid further gains of U.S. benchmark Treasury bonds' yields.

The yield of 10-year Treasury bonds picked up 3.8 basis points on Tuesday and closed at 1.669 percent, which continues to weigh on tech stocks.

"We have seen a little pressure on tech stocks as long-term government bond yields have rallied for the second day now. That's weighing on valuations," said a report by CNBC quoting Angelo Kourkafas, investment strategist at Edward Jones.

Meanwhile, the flash U.S. PMI composite output index for November stood at 56.5 in contrast with 57.6 in October and market expectation of 57.8, according to a release by IHS Markit on Tuesday morning.

The Dow Jones Industrial Average was up 194.55 points, or 0.55 percent, to 35,813.80. The S&P 500 increased 7.76 points, or 0.17 percent, to 4,690.70. The Nasdaq Composite Index was down 79.62 points, or 0.50 percent, to 15,775.14.

The energy sector and financials sector led growth among 11 sectors in the S&P 500 Index, thanks to the material rise of crude oil futures prices and the advancement of benchmark Treasury bond yields.

The reappointment of Fed Chairman Jerome Powell for a second term strengthens the case that Powell's patient approach to tightening will continue to apply, said a research note by UBS on Tuesday.

"We continue to believe that the Fed will not be compelled to tighten policy prematurely or aggressively. As pandemic disruptions fade, we expect year-over-year rates of inflation to fall from 6.5 percent at the end of 2021 to 1.8 percent by the end of 2022 in the United States," said UBS.

U.S. President Joe Biden on Monday announced that he intends to nominate Powell for a second term as Federal Reserve chairman and to nominate Lael Brainard as vice chair.

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