The US markets ended mostly lower on Tuesday with the Nasdaq showing a particularly steep drop amid weakness among technology stocks. The Nasdaq reached a record intraday high during trading last Thursday but has pulled back sharply since then, falling to its lowest closing level in a month. Traders were cashing in on tech stocks that benefited from the coronavirus-induced lockdowns as more states continue to lift restrictions. Additional selling pressure was generated in reaction to comments from Treasury Secretary Janet Yellen, who suggested interest rates may have to rise modestly to prevent the economy from overheating amid the recent spike in government spending.
The comments from Yellen come even though the Federal Reserve has repeatedly indicated interest rates are likely to remain at near-zero levels for the foreseeable future. On the economic data front, a report released by the Commerce Department showed the U.S. trade deficit hit a new record high in the month of March. The Commerce Department said the trade deficit widened to $74.4 billion in March from a revised $70.5 billion in February. The trade deficit was nearly in line with estimates, as street had expected the deficit to widen to $74.5 billion from the $71.1 billion originally reported for the previous month.
Nasdaq slipped 261.61 points or 1.88 percent to 13,633.5 and S&P 500 was down by 28 points or 0.67 percent to 4,164.66, while Dow Jones Industrial Average rose 19.8 points or 0.06 percent to 34,133.03.
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