NEW YORK (Reuters) – The S&P 500 and Nasdaq closed lower on Monday as rising government bond yields and the prospect of rising inflation sparked valuation concerns and hit stocks of soaring growth companies

The Dow Index ended up slightly higher, up 4% on a rise in Walt Disney Co shares

US. Benchmark Treasury 10-Year Yields Up 1363% Since early February, 10-year yields have increased 26 basis points on their way to their biggest monthly gain in three years

Still, some analysts noted that after a strong rally this year and 2020, the stock pullback was expected

“This is a bit of a setback, largely because stocks are a little overheated and there are some concerns that people are turning molehills into mountains,” said Brian Reynolds, chief market strategist at Reynolds Strategy

He cited concerns about the surge in government bond yields, but noted that junk bond yields hit an all-time low last week, suggesting that government bond safety is shifting to corporate risk among investors has

Federal Reserve Chairman Jerome Powell is due to speak to the Senate Banking Committee Tuesday, and investors are expected to look for possible changes in the Fed’s cautious outlook

“What investors are grappling with This means this (higher government bond yields) from an inflationary perspective. This is why there is a certain tantrum in the market right now,” said Lindsey Bell, chief investment strategist at Ally Invest in Charlotte, North Carolina / p>
Shares in Apple Inc, Microsoft Corp, Alphabet Inc, Tesla Inc, and Amazoncom Inc resumed their slide from the previous week, falling between 09% and 5%

The broadly bullish fourth quarter gains had pushed Wall Street major indices to record highs early last week, but the rally slowed, partly due to fears of a possible lag in US Vaccination efforts and inflation concerns due to stimulus measures

The Dow Jones Industrial Average ended on Jan. September 37 points higher or 009% on March 3152169 the S&P 500 lost 3021 points or 077% on 38765 and the Nasdaq Composite fell 34142 points, or 246%, to 1353305

The last time the Dow ended higher while the Nasdaq fell more than 2.4% was the 29th May 2001

The S&P 500 turned down five sessions in a row, the longest such series in a year

Value stocks outperformed growth stocks in February Investors are looking for a rebound in industrial activity and a revival in consumer demand as countries introduce vaccines to tame the pandemic

The industrial and financial sector S&P 500 rose 03% and almost 1% while energy values ​​rose 3.5% on higher oil prices [O / R

Discovery Inc jumped 89% after the media company announced it expected 12 million subscribers to paid streaming worldwide by the end of February as coronavirus restrictions kept people at home

Kohl’s Corp gained 62% after a group of activist investors appointed nine directors to the chain’s board of directors

Principal Financial Group Inc added 81% after a media report that activist investor Elliott Management Corp had acquired a stake in the life insurance company and was planning to push for changes

Declining issues outperformed advancing issues on the NYSE by a 113-to-1 ratio; on Nasdaq, a 1, the ratio of 63 to 1 favored the decline

The S&P 500 posted 71 new 52-week highs and no new lows The Nasdaq Composite posted 268 new highs and 15 new lows

Volume on US. Exchange was 1438 billion shares compared to the 16 average of 05 billion for the entire session over the last 20 trading days

(Reporting by Gertrude Chavez-Dreyfuss in New York; Additional reporting by Terence Gabriel; Editing by Matthew Lewis and David Gregorio)

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