Major U.S. stock indexes closed mostly higher Tuesday, erasing much of an early slide, as investors favored smaller, U.S.-focused companies for the second straight day.
Industrial, energy and health care stocks helped power the market higher. Banks also notched solid gains amid a broad pullback in demand for U.S. government bonds, which pushed yields higher. The yield on the 10-year Treasury note climbed to 1.73 percent from 1.62 percent late Monday, a big move.
Lenders rely on higher yields to set more lucrative interest rates on loans. Bank of America rose 2.5 percent, Goldman Sachs gained 1.7 percent and State Street vaulted 9 percent.
For the second day in a row, traders unloaded technology stocks and shares in companies that rely on consumer spending. Microsoft dropped 1.1 percent, as did payment processors Visa and Mastercard, losing 2.8 percent and 3.9 percent, respectively.
The S&P 500 index inched up 0.96 points, or less than 0.1 percent, to 2,979.39. The Dow Jones Industrial Average rose 73.92 points, or 0.3 percent, to 26,909.43. The average was briefly down 118 points.
The Nasdaq, which is heavily weighted with technology stocks, slid 3.28 points, or less than 0.1 percent, to 8,084.16.
Investors continued to flock to smaller-company stocks. They’re seen as being better shielded from the fallout of the costly trade war between the U.S. and China than large multinationals.
Among the small-cap gainers were ABM Industries, which rose 3.1 percent and Spectrum Pharmaceuticals, which jumped 16.9 percent.
The Russell 2000 index of smaller-company stocks led the gainers, adding 18.76 points, or 1.2 percent, to 1,542.99.
Benchmark crude oil fell 45 cents to settle at $57.40 a barrel. Brent crude oil, the international standard, slipped 21 cents to close at $62.38 a barrel. Wholesale gasoline rose 1 cent to $1.59 per gallon.