Banks lift Dow to record high

Investors shifted out of growth stocks and into value stocks, driving the Nasdaq lower but propelling the Dow north to a record high. A surge in Treasury yields for a second day drove down tech and growth stocks, including Monday's big winners, Tesla and Apple.

DataTrek Research Co-Founder Nick Colas said investors are worried about inflation and rising interest rates.

"Yesterday was kind of a first day of the year, first day of the month, first day of the quarter. It's always hard to parse what those money flows really mean. I think we're getting a truer read of what the markets concerned about today, and it clearly is that the 10 year is rising quite quickly."

But those rising Treasury yields pumped up interest rate-sensitive financial stocks. JPMorgan Chase rose nearly 4%. American Express, up over 3%.

Both were among the Dow's top gainers. The blue-chip index rose more than 200 points, but the S&P 500 closed nearly flat and the Nasdaq shed one-and-a-third percent.

Helping mitigate the S&P's drop: Ford's nearly 12% gain. The automaker said it would nearly double annual production capacity for its red-hot F-150 Lightning electric pickup to 150,000 vehicles. Shares of rival GM also rose.