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US Stocks Turn Lower; Bonds Slip       02/26 09:48

   Stocks gave up an early gain and turned mostly lower in morning trading on 
Wall Street Friday. Banks and energy companies led the way lower, while 
technology companies, which had been beaten down in recent days, started to 
recover.

   (AP) -- Stocks gave up an early gain and turned mostly lower in morning 
trading on Wall Street Friday. Banks and energy companies led the way lower, 
while technology companies, which had been beaten down in recent days, started 
to recover.

   Investors continued to watch the bond market, where Treasury yields were 
declining, as well as Washington, where Congress is expected to vote on 
President Joe Biden's stimulus package.

   The S&P 500 index was down 0.9% as of 10:30 a.m. Eastern. The Dow Jones 
Industrial Average was down 1.4%. The technology-heavy Nasdaq was down 0.6%.

   A sell-off on Wall Street Thursday picked up speed when the yield on the 
10-year U.S. Treasury note rose above 1.5%, a level not seen in more than a 
year and far above the 0.92% it was trading at only two months ago. That move 
raised the alarm that yields, and the interest rates they influence, will move 
higher from here.

   Bond yields were easing off of their multi-week climb. The yield on the 
10-year U.S. Treasury note fell to 1.49%.

   The recent rise in bond yields reflects growing confidence that the economy 
is on the path to recovery, but also expectations that inflation is headed 
higher, which might prompt central banks eventually to raise interest rates to 
cool price increases. Rising yields can make stocks look less attractive 
relative to bonds, which is why every tick up in yields has corresponded with a 
tick down in stock prices.

   Technology stocks have been impacted more than the broader market by the 
rise in bond yields. Technology stocks tend to trade at higher valuations than 
the overall market. Investors are also betting that with vaccinations, the 
coronavirus pandemic may be coming to an end which would pivot consumer 
behavior away from online-only shopping.

   In Washington, Democrats in Congress are preparing to move forward with 
President Biden's $1.9 trillion stimulus package, with a vote in the House of 
Representatives planned for Friday. The Senate could vote on the package as 
early as next week.

   The stimulus bill would include yet another round of one-time payments to 
most Americans, including an expansion of other refundable tax credits like the 
child tax credit, as well as additional aid to state and local governments to 
combat the pandemic.

 
 
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