Stocks Finish Lower a Day After Hitting Records

Stocks fall Tuesday, a day after they rallied to records on optimism about a U.S. economic rebound.
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Stocks finished lower on Tuesday, a day after equities rallied to all-time highs on optimism about an economic rebound in the U.S.

The Dow Jones Industrial Average finished down 97 points, or 0.29%, to 33,430. The S&P 500, which reached an intraday record earlier in the session, edged down 0.1% and the tech-heavy Nasdaq ticked down 0.05%.

The Dow and the S&P 500 closed at records on Monday after U.S. employers added the most workers to payrolls in seven months and other data offered evidence that the economy was improving. 

A reading Monday of the U.S. services sector - the biggest and most important component of the domestic economy - showed the best growth on record in March.

An accelerated vaccine rollout - the U.S. has reached about 3 million shots a day - and a gradual lifting of COVID-19 restrictions also have boosted the economic outlook.

“The jobs report underscored the rebound in the labor market,” said Quincy Krosby, chief market strategist at Prudential Financial. “The only thing that can stymie this rebound, this recovery, will be that COVID-19 launches another wave.”

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The yield on the 10-year Treasury tested two-week lows Tuesday as investors pared bets on Federal Reserve interest rate hikes even as the data continue to point to a surging post-pandemic recovery that could stoke near-term inflation. Benchmark 10-year Treasury yields traded at 1.656%.

Oil prices in the U.S. settled 1.28% higher at $59.33 a barrel after slumping on Monday after OPEC+ leaders decided to gradually boost crude production from May through July.

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Credit Suisse  (CS) - Get Report said it would record a charge of 4.4 billion Swiss francs ($4.7 billion) from the implosion of hedge fund Archegos Capital Management.

The Swiss banking giant said the charge would lead to a first-quarter pretax loss of about 900 million francs. The bank also said it would cut its dividend and suspend stock buybacks to protect its capital.

Stocks linked to Archegos, such as ViacomCBS  (VIACA) - Get Report, rose even after Credit Suisse reportedly sold additional blocks of shares that totaled more than $2 billion.