KeyCorp, Comerica fall on S&P downgradeAug 22 - Wall Street's main indexes pared gains on Tuesday, as U.S. Treasury yields rose on growing worries about interest rates staying higher for longer, while gains in Nvidia shares fizzled out in the run up to the chip designer's earnings.
The yield on the 10-year Treasury note scaled over 15-year highs after a brief pullback, dragging equities lower. "The reason why we're seeing pressure on U.S. stock market today is that we're seeing the reality of higher yields having an impact on markets," said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management.
The bond selloff has been driven by evidence of a strong U.S. economy, which dampened hopes of the Federal Reserve easing monetary policy anytime soon.Investors will be keen to see if Nvidia's results and forecast can match heightened market expectations following a blockbuster report last quarter that fueled a blistering rally in tech stocks amid the frenzy around artificial intelligence.
"If they really came out and said the demand for AI is less than expected, the entire market is going to be impacted," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield.