Equity indexes, however, continued to confront friction against the prospect of rising interest rates for benchmark debt, with the 10-year Treasury note TMUBMUSD10Y, 1.968% at around 1.96%, around its highest yield since 2019. Rising yields are a weight on valuations for speculative and growth-oriented stocks, which are being rerated for tighter monetary policy and higher borrowing costs.
The S&P 500 index SPX, -0.13% was trading 0.1% lower, weighed by declines in consumer discretionary SP500.25, -0.22%, energy SP500.10, -1.39% and health care SP500.35, -0.44%, despite the rise in Amgen.
The Nasdaq Composite Index COMP, -0.15% was trading less than 0.1% lower at 14,004.
In other corporate news, investors were focused on shares of exercise equipment maker Peloton Interactive PTON, +10.66%, which was after it said it would replace its chief executive, overhaul its board and cut costs, including lay off 2,800 employees. Shares of Pfizer Inc. PFE, -4.59% were lower, weighing on the health sector, after the drug maker reported fourth-quarter profit that beat expectations, while revenue more than doubled but missed forecasts.
In economic data, the U.S. trade deficit jumped 27% in 2021 to a record $859 billion largely because a recovering economy gave Americans the means to buy more imports. They also paid higher prices due to rising inflation.
The deficit widened in December by 1.8% to $80.7 billion, marking it the second largest monthly increase ever. Economists polled by The Wall Street Journal had forecast a $82.9 billion shortfall.