Cyclical stocks outperforming
The S&P 500 is down 1.2%, while the cyclical financials (+0.4%), energy (+0.5%), and materials (+0.3%) sectors trade higher. The outperformance of these cyclical stocks is a return of yesterday's trade that favored economically-sensitive companies, possibly keying off Treasury Secretary Yellen's comments about higher rates to keep the economy in check. This observation suggests that economic growth is still going strong. Shares of Apple (AAPL 127.13, -5.41, -4.1%), meanwhile, are now down 4% to lead the mega-cap stocks in losses. Higher interest rates typically work against the elevated valuations of growth stocks, although rates are trading lower right now. The 10-yr yield is down three basis points to 1.58%.