Stocks declined on Tuesday as investors watched the rising Treasury yields, which reached a 16-year high.
The Dow Jones Industrial Average dropped 159 points, or 0.5%. The Nasdaq Composite fell 0.7%, and the S&P 500 fell 0.5%.
The 10-year Treasury yield rose to its highest level since August 15, 2007, trading at 4.735%. The benchmark yield has increased over the past month as traders assess the prospect of continued Federal Reserve tightening.
For a while now, investors have been worried about the possibility of rising interest rates from the Federal Reserve because they believe that a tighter monetary policy could cause the economy to enter a recession. Treasury yields have now reached levels not seen in more than a decade as a result of this.
According to Adam Crisafulli of Vital Knowledge, “Stocks are attempting to rebound, but bulls remain chastened and diffident, with little appetite to chase on the upside.” At this stage, buyers appear willing to wait until the lift is on more solid ground before partaking, missing the following 2-4% of an increase.
Source (CNBC)
