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Stocks tumbled on Tuesday as Treasury yields hit their highest levels since 2007, raising concern higher interest rates would freeze the housing market and tip the economy into a recession.
The Dow Jones Industrials descended 430.97 points, or 1.3%, to close Tuesday at 33,002.38, its biggest one-day decline since March.
The S&P 500 index sagged 58.94 points, or 1.4%, to 4,229.45, to its lowest level since June.
With Tuesday’s losses, the Dow went into the red for the year. The broader S&P 500 is still up 10% for 2023.
The NASDAQ index stumbled 248.31 points, or 1.9%, to 13,059.47.
Stocks moved to their lows of the session as yields spiked further following the release of the August job openings survey, which signaled a still tight jobs market. The survey showed 9.6 million open roles in the month. Meanwhile, economists polled by Dow Jones had anticipated 8.8 million jobs.
Investors are hoping to turn the page on a disappointing September for stocks. All three major indexes closed the month and the third quarter lower. The S&P 500 alone lost nearly 5% in September.
That means key economic reports — such as last month’s payroll reports, due Friday — and the kickoff of earnings reporting season next week are back in focus.
Prices for the 10-year Treasury swooned, hiking yields to 4.80% from Monday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices regained 71 cents to $89.53 U.S. a barrel.
Gold prices faded $7.40 to $1,839.80.
