(Image by Robert Jones from Pixabay)
(CNBC) -- U.S. stocks slumped on Tuesday in a volatile trading session at the start of the holiday-shortened week as investors weighed what strong economic data and rising rates mean for the Federal Reserve’s aggressive tightening campaign.
The Dow Jones Industrial Average fell 173.14 points, or 0.55%, to close at 31,145.30, but was off lows of the day boosted by defensive stocks such as Johnson & Johnson and Coca-Cola. The S&P 500 slipped 0.41% to 3,908.19 and the Nasdaq Composite fell 0.74% to 11,544.91, notching its seventh day of losses, its longest since 2016.
At the same time, bond yields surged, adding to the rout in stocks. The yield on the U.S. 10-year Treasury jumped as much as 0.162 percentage point to 3.353% before settling lower, around 3.342% as investors sold bonds. Yields move inversely to prices.
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