US stocks hold steady, bonds fall after positive GDP data

The main US equity gauges stalled on Tuesday morning as energy stocks tumbled ahead of the Opec meeting on Wednesday, while signs of robust growth in the US economy lifted utility and real estate sectors.

The S&P 500 fluctuated around the 2,200 mark, while the Dow Jones Industrial Average and Nasdaq Composite were little changed. The energy sector led declines with a 2 per cent decrease, as crude oil prices dropped. Brent crude, the international oil benchmark, was 3 per cent lower, falling below $47 per barrel.

Some of those declines were offset by gains in the the utilities and real estate sectors, which rose 0.8 per cent and 0.6 per cent respectively, after an upward revision to third-quarter GDP growth signaled gathering strength in the US economy.

Positive US economic data put pressure on US government bonds as inflation expectations rose. The 10-year Treasury yield, which moves opposite to its price, rose 2.9 basis points to 2.34 percent.

The dollar index was flat at 101.3 after increasing as much as 0.3 per cent earlier in the morning.