Wall Street stocks sharply lower over U.S. Treasury yield gains

The sharp lows on Tuesday of Wall Street stocks is deepening concerns over persistent inflation and price hikes, as debt ceiling negotiations continue in Washington.
All three major U.S. stock indexes slid by nearly 2% or even more, with interest rate sensitive tech and tech adjacent stocks while investors lost risk appetite.
The S&P 500 index and the Nasdaq Composite index were on track for their largest monthly lows since September 2020.
The Dow Jones Industrial Average fell 565.16 points, or 1.62%, to 34,304.21. The S&P 500 lost 90.34 points, or 2.03%, to 4,352.77 and the Nasdaq Composite dropped 420.41 points, or 2.81%, to 14,549.56.
Among the 11 major sectors of the S&P 500, all except for energy ended red, as tech and communications services suffer the steepest percentage losses.
Alphabet Inc, Apple, Microsoft Corp and Amazon.com weighed heaviest on the S&P and Nasdaq.
Ford Motor Co was one of the few bright spots, progressing on news that it would join Korean battery partner SK Innovation to invest $11.4 billion to build an electric F-150 plant and three U.S. battery plants.
The big picture is a direct reflection of previous week’s surge of Treasury bond yields, which has led to a mentality governed by the sell first, ask questions later motto.
There are multiple factors weighing on sentiment today, including he back-and-forth in Washington with the debt ceiling and the spending bill as well as potential higher taxes.
U.S. Treasury yields continued rising, to the highest level since June, as inflation expectations heated up and fears grew that the U.S. Federal Reserve could shorten its timeline for tightening its monetary policy.
Treasury Secretary Janet Yellen said she expected inflation to end 2021 near 4% and warned lawmakers their failure to avert a government shutdown as the nation moves closer to exhausting its borrowing capabilities could cause serious harm to the economy.
Senate Republicans appeared set to strike down efforts and endeavors by Democrats to extend the government’s borrowing authority and avoid a potential U.S. credit default.