The tech-heavy Nasdaq fell 0.4%, while the S&P 500 lost 0.3%. The Dow Industrials, the benchmark index, fell by roughly 31 points, or 0.1%.
Micron Technology saw a 1.4% increase after reaching a record high the day before. The memory chip manufacturer is expected to have its best month since a 40% increase in December 2009. Other top performers were Tesla, up 2.9%, and Seagate Technology, a data-storage company, up 7.4%.
A major decline is not a concern for most investors, according to Thomas Martin, a senior portfolio manager at Globalt Investments. Though market euphoria usually makes analysts cautious, he sees solid foundations and further upside potential for the rally.
According to recent economic data, the economy is still doing well, at least for businesses and households with extra money to spend. February saw a sharp increase in orders for durable goods, indicating a high demand for aeroplanes and other transportation machinery. Concurrently, house prices increased at the fastest rate since 2022 in January, rising 6% from a year earlier.
Customer confidence was a dampener on the encouraging data. The Conference Board's index for March dropped from 107 to 104.7, below analysts' expectations. Dana Peterson, the organization's chief economist, stated that while lower-class Americans are becoming more cautious as the job market cools, older Americans are feeling more upbeat.
Following the data on home prices and durable goods, bond prices decreased as yields increased. Bond yields were under pressure to rise, but in the afternoon, robust investor demand for a record $67 billion Treasury Department auction of 5-year notes eased the pressure.
After rising to 4.252% the day before, the yield on 10-year U.S. Treasury notes ended Tuesday at 4.233%, reversing its recent increase.
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