Wall Street closes mixed; S&P 500 and Nasdaq fall weighed down by growth stocks

Wall Street It closed mixed on Tuesday, after kicking off a week shortened by the Christmas festivities, as rising US Treasury yields pressured interest rate-sensitive mega-cap stocks.

Growth stocks dragged down the Nasdaq, dominated by technology, down. The S&P 500 was also in negative territory, while the Dow Jonesdriven by value stocks, ended slightly in the green.

“Higher (Treasury) yields are putting pressure on growth stocks, and on the other hand, industrials, utilities and energy are outperforming,” said Ryan Detrick, chief market strategist at Carson Group at Omaha.

“Money is moving out of growth areas and making its way to the value side, which is a microcosm of what we’ve seen all year.”

The titles of Tesla Inc they tanked after Reuters reported that the electric vehicle maker plans to run a reduced production schedule at its Shanghai plant until January. The stock has lost about 70% of its value this year.

The Dow Jones Industrial Average rose 0.11%, to 33,241.56 units, while the S&P 500 it fell 0.40%, to stay at 3,829.25 units. The Nasdaq Composite it lost 1.48%, to 10,353.23 units.

US-listed shares of Chinese companies including JD.Com Inc, Alibaba Group Holding Ltd and Pinduoduo Inc posted sharp gains after China said it would stop requiring travelers to enter quarantine to access the Internet from January 8. asian country.

Rising Treasury yields put interest rate-sensitive growth stocks under pressure, a situation that has been recurring in 2022. Over the year, growth stocks have plunged more than 30% compared with the drop in value of about 7.5% over the same period.

With just four trading days left in 2022, all three US indices are on track to post their biggest annual loss since 2008, the nadir of the global financial crisis.

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