NEW YORK (Reuters) – The dollar rose and a gauge of global equity markets slipped on Tuesday as rising U.S. Treasury yields dampened the appeal of the U.S. tech sector and led investors on both sides of the Atlantic to shares that stand to benefit as economies re-open.

The stronger dollar and rising yields, along with expectations of a strong recovery, sapped demand for safe-haven bullion and pushed gold prices lower.

European shares advanced near record highs on hopes of a vaccine-driven recovery as investors looked past the fallout of U.S. hedge fund Archegos’ default, which slammed Credit Suisse and Nomura shares hard on Monday.

The STOXX 600 index gained 0.7%, putting the pan-European index less than 1% from its pre-pandemic peak, while bank and mining stocks pushed the blue-chip FTSE 100 index in London to close 0.5% higher.

Apple Inc, Microsoft Corp and Amazon.com Inc led the S&P lower, while Tesla Inc, JPMorgan & Co. and Bank of America were the benchmark’s top advancing stocks.

The play-book of the past month was for the most part evident in Tuesday’s session, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

“When rates are higher you tend to see financials act better and the large-cap tech stocks tend to be for sale. They have a problem making headway,” James said.

“Look at Apple, Facebook, Amazon, Microsoft, they’re all lagging in a meaningful way today, as is the Nasdaq,” he said.

While the major U.S. equity indexes fell, advancing shares outnumbered declining issues, a sign of the impact big tech has on Wall Street and MSCI’s benchmark for global equity markets.

The MSCI all-country world index fell 0.02% to 672.72, while its index for emerging markets stocks rose 0.74%, with travel-related stocks among the top gainers on Brazil’s Bovespa index.

The Dow Jones Industrial Average fell 0.17%. The S&P 500 lost 0.17% and the Nasdaq Composite added 0.04%.

Bets on a speedy economic recovery driven by the vaccine rollout and unprecedented stimulus lifted the S&P 500 and the Dow to record closing highs last week.

The dollar climbed to a one-year high against the yen and rose against major currencies on the increasing distribution of U.S. vaccines and President Joe Biden’s plans to spend up to $4 trillion on infrastructure.

Biden is expected on Wednesday in Pittsburgh to announce his plan, details of which spurred yields higher on concerns the spending could push up the government deficit.

The 10-year Treasury yielding 1.7% is not the harbinger of a bad economy, said Jason Pride, chief investment office for private wealth at Glenmede in Philadelphia. But there are concerns that inflation may be on the horizon, he said.

“Now we’re starting to see the concerns of what comes after you have an economy recovering and you’re injecting all this fiscal stimulus,” he said. “Does that mean the Fed has to raise rates to slow things down? The answer to that is ‘kind of.’”

The 10-year U.S. Treasury note rose 1 basis point to yield 1.7189%.

The dollar index rose 0.383%, with the euro down 0.34% to $1.1722. The Japanese yen weakened 0.48% versus the greenback at 110.31 per dollar.

The rally in European shares to near record highs and signs of a pick-up in inflation in big euro zone economies weighed on euro area bonds, pushing 10-year yields up 4 to 5 basis points across the board.

U.S. gold futures settled down 1.7% at $1,686 an ounce. Spot gold fell 1.70% to $1,682.85.

Oil prices slid as the Suez Canal reopened to traffic, while focus turned to an OPEC+ meeting this week that analysts expect will approve an extension to supply curbs amid disappointing demand prospects.

Brent crude futures slid 84 cents to settle at $64.14 a barrel, while U.S. crude futures settled down $1.01 at $60.55 a barrel.

For a graphic on Global asset performance:

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