NEW YORK, Sept. 28 (Xinhua) -- U.S. stocks dipped on Tuesday morning as investors rotated out of high-flying tech shares.
Shortly after the opening bell, the Dow Jones Industrial Average fell 116.77 points, or 0.33 percent, to 34,752.60. The S&P 500 dropped 36.92 points, or 0.83 percent, to 4,406.19. The Nasdaq Composite Index shed 202.44 points, or 1.35 percent, to 14,767.53.
Nine of the 11 primary S&P 500 sectors pulled back in morning trading, with technology down 1.5 percent, leading the laggards. The energy and the financials groups, however, rose 2 percent and 0.3 percent, respectively.
The massive losses in tech names came amid a spike in U.S. bond yields.
High-growth tech shares are rate-sensitive as higher interest rates could erode their future profits, compressing their stock valuations, experts noted.
The yield on the benchmark U.S. 10-year treasury continued its upward momentum, rising to 1.558 percent on Tuesday morning, while the yield on the 30-year Treasury bond hovered above 2 percent.
Wall Street is keeping a close eye on Federal Reserve Chair Jerome Powell's testimony to the Senate Banking Committee on Tuesday.
In prepared remarks, the Fed chief said that "inflation is elevated and will likely remain so in coming months before moderating," adding the related effects have been "larger and longer lasting than anticipated." Enditem
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