Stocks slip as Walmart drags down the Dow
Stocks slipped to kick off trading after the holiday.
The Dow fell as much as 200 points on Tuesday, halting last week’s recovery. Rising bond yields and weaker-than-expected Walmart earnings triggered the drop.
Walmart() tumbled 10% following a downtick in online sales.
The yield on the 10-year U.S. Treasury bond rose to 2.91%. Rising yields coupled with interest rates hikes from the Fed to stave off inflation could make bonds more attractive to investors.
Related: Why the bond market is freaking out Wall Street
February has been one Wall Street’s most volatile months in recent memory.
Inflation fears sparked the market sell-off that began February 2, when the Labor Department reported that wages grew at the fastest pace in nine years. The Dow fell 1,000 points twice in a week.
But the Dow staged a comeback, recording six straight days of gains. The S&P 500 soared 4.3% last week. It was the S&P’s best week in five years.
“Some type of a near-term give back makes sense,” said Ryan Detrick, LPL Research’s senior market strategist.
Investors are resetting and will shift their attention to the corporate earnings home stretch.
On Wednesday, the Federal Reserve will release its minutes from January that may also provide clues about creeping inflation and the Fed’s planned interest rate path.
“This week should allow for a degree of ‘relative’ temperance to take hold in markets,” said Peter Kenny, an independent market strategist and founder of Kenny’s Commentary.