Treasury Yields Weigh on Stocks as US Economy Faces Rate Hike Expectations

The US stock market saw mixed results on Tuesday, with the S&P 500 and Dow Jones Industrial Average ending lower due to elevated Treasury yields. The Nasdaq 100, however, rose by 0.2%. Oil prices dropped slightly after news of a release from the Strategic Petroleum Reserve.

Market pricing now reflects expectations for multiple interest rate increases throughout the coming year. New York Fed President John Williams suggested an additional rate hike might be necessary to curb inflationary pressures.

The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) rose about 1.5%, tracking gains in Broadcom, Micron Tech, and Advanced Micro Devices. Meanwhile, retail sentiment on Stocktwits for QQQ, SPY, and DIA was 'bullish' with 'high' message volumes.

Other notable news includes Target Corp.'s (TGT) decision to lower prices on nearly 2,000 home, apparel, and accessories items as holiday shopping gets underway. Apple Inc. (AAPL) Chief Executive John Ternus is reportedly considering changes to the company's management structure and product development process.