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S&P 500 pares gains as investors dump real estate, utilities stocks

Chris Matthews

Stock market investors rotated out of stocks in the utilities and real estate sectors, which are typically seen as defensive in nature, in favor of more cyclical sectors like information technology and financials. The S&P 500 index erased a 0.3% gain to trade flat Thursday afternoon, while the Nasdaq Composite index lost 15 points, or 0.2% to 8,187. The Dow Jones Industrial Average , meanwhile rose 162 points, or 0.6%. Helping to suppress the S&P were steep selloffs in the real estate sector, which fell 1.7%, per the Real Estate Select Sector SPDR fund , as long-term interest rates rose in response to a weak bond auction. Utilities stocks, also seen as safer 'bond proxy' were the second worst-performing sector, down 0.7%, as seen in the Utilities Select Sector SPDR fund . The yield on the 30-year U.S. Treasury bond rose more than 6 basis points to 2.635%, while the 10-year U.S. Treasury note spiked 6 basis points to 2.212%.