Confused, worried trader

Stocks nosedived Tuesday, with the Dow Jones industrial average sinking 600 points at session lows. The selling came after the 10-year Treasury yield hit 3%, spooking markets. The dollar edged lower after a week of gains.

Here’s the scoreboard: 

Dow Jones Industrial Average: 24,023.93 −424.76 (-1.74%)

S&P 500: 2,623.41 −46.88 (-1.76%)

AUD/USD: 0.7609 +0.0002 (+0.03%)

ASX 200 SPI futures: 5,869.0 -5 (-0.09%)

  1. The 10-year Treasury yield climbed above the key 3% level for the first time since 2014Rising US government bond yields can crowd out consumer and corporate spending. 
  2. Earnings season rolls on. Shares of Caterpillar sank as much as 6% after calling its first-quarter results a “high watermark” for the year. Google-parent Alphabet shed more than 5% after reporting an increase in capital spending.
  3. Other FAANG stocks were also hit hard. Shares of Facebook, Netflix and Amazon shed more than 4% each. 
  4. Oil topped $75 a barrel before plunging more than 2.5%. Traders shook off mounting supply concerns after President Donald Trump, alongside French President Emmanuel Macron, told reporters the US may preserve the Iran nuclear deal. 

Here is Wednesday’s economic calendar:

  • Australian banks are closed for Anzac Day.
  • Australia reports quarterly import prices.
  • Bank of Canada Governor Stephen Poloz speaks. 
  • US weekly crude inventories are due out. 
  • Facebook, Twitter, AT&T and Boeing report quarterly earnings. 

SEE ALSO: Morgan Stanley identified 12 trades to protect you from a stock market meltdown

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