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Stock Market Today: Dow ends down nearly 180 points, Nasdaq tumbles 1.9% as Treasury yields surge after job-openings, ISM services data

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Stock Market Today: Dow ends down nearly 180 points, Nasdaq tumbles 1.9% as Treasury yields surge after job-openings, ISM services data

U.S. stocks finished lower on Tuesday as Treasury yields spiked after a pair of strong economic reports dampened hopes for aggressive Federal Reserve interest-rate cuts this year.

The Nasdaq Composite tumbled 375.30 points, or 1.9%, to end at 19,489.68. The tech-heavy index suffered its worst day since Dec. 18, according to Dow Jones Market Data.

The S&P 500 was off 66.35 points, or 1.1%, to finish at 5,909.03.

The Dow Jones Industrial Average fell 178.20 points, or 0.4%, ending at 42,528.36. It was the worst day for the blue-chip index since Dec. 30, according to Dow Jones Market Data.

The yield on the 10-year Treasury note jumped nearly 7 basis points to 4.684% on Tuesday afternoon, the highest since April 25 of last year. The 30-year rate spiked over 7 basis points to 4.91%, the highest since November 2023, according to Dow Jones Market Data.

“I think there’s a level at which rates rise enough that investors begin to worry that it hurts the entirety of the equity market because it hurts the economy more,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company.

Schutte told MarketWatch the rising yields have started to take “a broader swap of the stock market out, with the previously impervious ‘Magnificent Seven’ getting hit a bit.”

“I do believe in relative valuation, and with higher levels of interest rates, [Treasurys] compete more with a relatively expensive stock market,” he added.

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