Dow slips by 200 points after recovering from early losses

• For the week, the Dow gained 6.2%, breaking eight weeks of losses

US stocks traded largely flat on Tuesday after erasing early losses, triggered by the rapid rise in Treasury yields. 

Dow continued its climb for the sixth straight day recording the longest streak of wins in the past two months. Consumer and technology stocks closed higher.

The Dow Jones Industrial Average fell 222.84 points, or 0.7%, to close at 32,990.12, while the S&P 500 slipped 0.6% to 4,132.15. The Nasdaq Composite eased 0.4% to 12,081.39.

US stocks managed to erase the losses incurred in the recent weeks after the Dow Jones rose 6.2% last week. The S&P 500 rose 6.6% last week for its biggest weekly gain since March 2020, while the Nasdaq Composite rose 6.8% in the same week.

Investors heaved a sigh of relief when the US inflation rate, as measured by the personal consumption expenditures (PCE) index, rose just 0.2% in April. This was the smallest monthly increase in a year and a half. 

Market movers

Treasury yields were on the rise on Tuesday, up by 10 basis points at 2.84% in early afternoon trading.

Stocks were down broadly Tuesday with nine out of 11 S&P 500 sectors negative.

The shares of UnitedHealth Group (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ) were off by more than 1% each.

West Texas Intermediate (WTI) crude was trading around 2% higher at more than $117 a barrel Tuesday afternoon after the European Union (EU) reached a watered-down agreement that will partially ban imports of Russian oil.

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