The Nasdaq Composite dropped by 2.2%, Dow slipped by 253 points
The 10-year Treasury yield hit its highest level since May 2019 at 2.56%
Major US benchmark indices fell to their session lows on Tuesday shortly after Federal Reserve Governor Lael Brainard hinted the central bank could take a more aggressive approach to its tightening policy.
The Dow Jones Industrial Average fell 253 points, or 0.7%, to about 34,669. The S&P 500 dropped about 54 points, or 1.1%, to 4,528. The Nasdaq Composite slipped 326 points, or 2.2%, to 14,206.
After opening the day slightly positive, stocks fell after Brainard, said the central bank needs to shrink its balance sheet “rapidly” to drive down inflation. “Inflation is much too high and is subject to upside risks,” she said.
The 10-year Treasury yield jumped nearly 14 basis points higher at around 2.56% and hit its highest level since May 2019. Yields and debt prices move opposite each other.
The US Treasury has halted Russia’s debt payments via U.S. dollar accounts. The European Union was considering a ban on coal imports from the country.
Volatility in the oil markets persisted with West Texas Intermediate dipping 0.5% at $102.76 per barrel and Brent crude falling 0.4% to $107.10.
Shares of Twitter (NYSE: TWTR) jumped 2.3% on Tuesday after Elon Musk was appointed to the board. The company’s shares had jumped 27.1% Monday for their best single-day gain ever after a US Securities and Exchange Commission (SEC) filing revealed Musk had taken a 9.2% stake in the social media platform.