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  • Wall Street’s main indexes started the day in the negative territory.
  • Financial shares post strong gains on the back of rising T-bond yields.
  • Risk-sensitive technology stocks suffer heavy losses on Tuesday.

Major equity indexes in the US opened lower on Tuesday as investors adopt a cautious mood amid surging US Treasury bond yields. As of writing, the Dow Jones Industrial Average was down 0.2% at 33,107, the S&P 500 was losing 0.4% at 3,955 and the Nasdaq Composite was falling 0.95% at 12,842.

The benchmark 10-year US T-bond yield climbed to its highest level in more than a year at 1.774% on Tuesday and helped the financial stocks post strong gains following Monday’s selloff. Currently, the S&P 500 Financials Index is the only major sector trading in the positive territory, rising nearly 1%.

On the other hand, the risk-sensitive Technology Index is down 1.2% and the Energy Index is losing 1.15% pressured by falling crude oil prices.

S&P 500 chart (daily)