NEW YORK, New York - U.S. stocks lipped on Tuesday as bond yields rose in the aftermath of the easing of the immediate banking crisis.
Punters bet the Fed will continue raising rates with fears about the bank ebbing.
"For the second day in a row, interest rates are rising, and the markets are being led by the more economically sensitive sectors, such as energy and industrials," Brian Levitt, global market strategist for Invesco told CNBC Tuesday.
"Technology stocks are among the laggards, which is often the case as interest rates rise," he said. "For the time being, investors seem to be looking beyond the challenges in the financial sector and recognizing that U.S. economic growth continues to be resilient."
The Nasdaq Composite dropped 52.76 points or 0.45 percent to close Tuesday at 11,716.08.
The Dow Jones industrials index eased 37.83 points or 0.12 percent to 32,394.25.
The Standard and Poor's 500 edged down 6.26 points or 0.16 percent to 3,971.27.
Foreign exchange markets Tuesday saw a sharp fall in the U.S. dollar. In fact, the losses were across the board.
The Euro led the charge, rising by 0.44 percent to 1.0845.
The Japanese yen advanced a hefty 0.62 percent to 130.71.
The Canadian dollar rose 0.43 percent to 1.3601.
The British pound gained ground against the U.S. dollar, with the GBP/USD pair climbing 0.43 percent to 1.2339.
The Swiss franc grew 0.41 percent to 0.9192.
Meanwhile, the Australian dollar gained ground against the U.S. dollar, with the AUD/USD pair rising sharply by 0.82 percent to 0.6704.
The New Zealand dollar also saw gains adding 0.86 percent to 0.6245.
Global stock markets ended mixed on Tuesday, with some indices posting gains while others saw losses. The HANG SENG INDEX was one of the top performers, rising by 1.11 percent to reach 19,784.65, while in Shanghai, China, the SSE Composite Index fell by 0.19 percent to 3,245.38.
In Europe, the FTSE 100 in the UK rose by 0.17 percent to 7,484.25, while the DAX PERFORMANCE-INDEX in Germany and the CAC 40 in France rose by 0.09 percent and 0.14 percent respectively. The BEL 20 in Belgium and the Euronext 100 Index also posted small gains of 0.10 percent and 0.11 percent, respectively. Meanwhile, the ESTX 50 PR.EUR in Europe was up by just 0.09 percent.
In Japan, the Nikkei 225 rose by 0.15 percent to 27,518.25, while the KOSPI Composite Index in South Korea saw gains of 1.07 percent to reach 2,434.94. The IDX COMPOSITE in Indonesia also posted gains of 0.77 percent, while the FTSE Bursa Malaysia KLCI in Malaysia rose by 0.89 percent.
In Australia, the S&P/ASX 200 rose by 1.04 percent to 7,034.10, while the ALL ORDINARIES was up by 1.06 percent to reach 7,219.40. The S&P BSE SENSEX in India, on the other hand, fell by 0.07 percent to 57,613.72.