The technology sector continued losses as rising government yields dampened the outlook for growth equities, while US shares rallied on the back of advances in cyclicals.

After bouncing between gains and losses in the last hour of trading, the S&P 500 finished the day higher. The rise was led by energy and financial stocks. The tech-heavy Nasdaq 100 fell, adding to Monday's late-night selloff. The treasury yield curve steepened, with the 10-year yield approaching a one-month high. Turkey's currency crisis worsened, with the lira falling below 13 per US dollar. Zoom fell as growth appeared to be halting.

Traders reduced their bets on the Federal Reserve remaining dovish for a longer period of time after Jerome Powell was selected to a second term. In his policy approach, the chair aimed to strike a compromise, stating that the central bank will utilise all measures at its disposal to help the economy while also preventing inflation from becoming entrenched.

Despite recent dips, US stocks have been trading at all-time highs, raising concerns about valuations as investors weigh growth prospects in the face of rising inflation and a lingering pandemic.

Since September 2020, the dollar has traded at its greatest level. For the first time since 2017, the Japanese yen surpassed 115 per dollar.

Fed's Bostic on Monday that the US central bank may need to accelerate the elimination of monetary stimulus and allow for an earlier-than-planned increase in interest rates.

Turkey's lira fell the most in the world, reaching a new low, after President  Erdogan defended his pursuit of lower interest rates to support economic growth and job creation. His unconventional stance that rising interest rates feed inflation has caused the currency to fall for nine years in a row, resulting in a 43% drop in 2021 alone.

Zoom video fell as analysts, notably Citigroup Inc., expressed concern about sluggish incremental growth and the lowest new-customer additions in three years. The stock of Urban Outfitters is down 9.4% as a result of supply-chain problems and cost pressures in the third quarter.

Oil rose after an unprecedented plan by consumption countries to use their strategic oil reserves proved less severe than investors had anticipated. While the headline magnitude of the US release is considerable, a major portion of the crude will be borrowed and returned later, leaving traders expecting tighter balances in the future. In collaboration with China, Japan, India, South Korea, and the United Kingdom, the United States will release 50 million barrels of crude from its strategic reserves