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%)
- The 10-year Treasury yield climbed above the key 3% level for the first time since 2014. Rising US government bond yields can crowd out consumer and corporate spending.
- 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.
- Other FAANG stocks were also hit hard. Shares of Facebook, Netflix and Amazon shed more than 4% each.
- 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.