The Dow Jones industrial average slipped 4 points, with Apple contributing the most losses

US stocks fall as investors worry about the threat of high sovereign bond yields

U.S. equities slipped on Tuesday as investors weighed the possibility of higher sovereign bond yields.

The Dow Jones industrial average slipped 4 points, with Apple contributing the most losses. The S&P 500 slipped 0.16 percent, with financials leading decliners. The Nasdaq composite fell 0.2 percent.

Treasury yields have risen sharply over the past month amid hawkish central-bank rhetoric. In that time period, the benchmark 10-year note yield has climbed to around 2.38 percent from approximately 2.2 percent.

Similar moves have transpired in European bonds. The 10-year German bund yield has jumped to 0.55 percent from around 0.25 percent in the past month.

Stocks, meanwhile, have remained in a range in the past month, with the S&P 500 falling just 0.18 percent.

"[L]eadership continues to reflect an environment suggestive of higher rates and a risk-seeking attitude," said Chris Verrone, head of technical analysis at Strategas Research Partners, in a note Tuesday. "Continued outperformance from groups like Banks, Capital Markets, Transportation, Machinery, and Homebuilders underscore this on the positive side. Conversely, many of the bond proxies have continued to deteriorate in both absolute and relative terms."

"If stock prices discount expectation vs. reality, the market is likely telling us that the high-water mark in central bank policy has likely been seen," he said.

Source for more: https://uk.finance.yahoo.com/m/dea14d18-0607-3c88-bc05-8875bd7b7d83/ss_us-stocks-fall-as-investors.html
http://www.telegraph.co.uk/technology/apple/10739946/Apple-leads-shift-towards-cleaner-internet.html