U.S. markets and stock exchange traded funds dropped Tuesday as bond yields rose and the technology sector fell behind.

On Tuesday, the Invesco QQQ Trust (NASDAQ: QQQ) fell 0.9%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was down 0.5%, and iShares Core S&P 500 ETF (NYSEArca: IVV) was 0.5% lower.

Yields on benchmark 10-Year treasury notes hit a 14-month high, dragging on growth and tech names again. The Nasdaq benchmark was on pace for its first monthly loss since November as investors pared back exposure to technology stocks due to their high valuations and rising rate risks.

“Investor preferences are flipping around here almost on a daily basis, primarily between tech plus and cyclicals,” Tim Ghriskey, chief investment strategist at Inverness Counsel, told Reuters. “Cyclicals have certainly had the upper hand here for a while, trading off the reopening of the economy.”

Meanwhile, value stocks have been gaining momentum and are outperforming their growth counterparts.

“For the next day or two, (value stocks) will probably be leaders because we have quarter-end and institutions want to make sure that they have exposure to the names that performed well,” Robert Pavlik, senior portfolio manager at Dakota Wealth, told Reuters.

However, the reflation trade has met some bumps in recent sessions due to growing concerns over a new wave of Covid-19 infections and problems over the vaccine rollout that could impede the global economic recovery efforts. The Biden administration has warned that a new variant of the coronavirus and looser restrictions could lead to increased infection rates, the Wall Street Journal reports.

“There are question marks about the interplay of the vaccine rollout: is it sufficient to offset the risk of another wave of Covid cases? This could put the reopening trade in jeopardy,” Edward Park, chief investment officer at Brooks Macdonald, told the WSJ. “It is more questionable whether things will be back to normal in summer as some were hoping.”

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