(Reuters) – The New York Stock Exchange opened in mixed order on Tuesday amid volatility as easing fears over the banking sector following the Silicon Valley Bank takeover deal led to higher yields on treasury bonds. US Treasury.
In early trading, the Dow Jones index gained 4.95 points, or 0.02%, to 32,437.03 points and the broader Standard & Poor’s 500 fell 0.11% to 3,972.97 points.
The Nasdaq Composite lost 0.19%, or 22.31 points, to 11,746.53.
The lull in the banking sector following Monday’s announcement of First Citizens BancShares’ takeover of the assets of Silicon Valley Bank, which went bankrupt earlier this month, pushed Treasury yields higher US and penalized technology and growth stocks.
“The fact that we got answers on Silicon Valley Bank, Signature Bank and Credit Suisse means we have more answers than questions,” said Art Hogan, head of market strategy at B Riley Wealth.
Yields on 10-year Treasury bills advanced more than two basis points to 3.552%, which weighed on shares of Apple, Meta and Alphabet, down 0.3% to 2% in early trade.
Two American officials, Michael Barr and Martin Gruenberg, vice-president of the Fed and president of the FDIC respectively, must speak before Congress from 2:00 p.m. GMT on the recent banking crisis in the United States.
Investors will also be watching for February’s consumer confidence data release at the same time, which is expected to show a slight decline.
The action First Citizens BancShares is up 3% Tuesday in early trading after jumping more than 50% the day before after the announcement of the acquisition of SVB.
Lyft gained 7.1% after announcing that Amazon.com alum David Risher would become its next chief executive.
Virgin Orbit Holdings lost 21.4% as the struggling group announced it would extend unpaid leave for most of its employees as negotiations to secure new funding continue.
New York-listed Alibaba shares rose 9% as the Chinese e-commerce group said on Tuesday it planned to split its operations into six businesses.
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(Written by Diana Mandiá, Editing by Kate Entringer)
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