The Dow Jones Industrial Average dropped 0.98% to 51,018 by midday Tuesday as a jump in Treasury yields pressured stocks across the board. Caterpillar led the index lower, falling over 6% after an analyst downgrade, while the S&P 500 and Nasdaq Composite also retreated from Tuesday's record highs.
The Dow Jones Industrial Average fell 0.98% to 51,018 as of 11:36 AM ET, pulling back from the record it set a day earlier. The S&P 500 slipped 0.51% to 7,779, and the Nasdaq Composite dropped 0.55% to 27,449.
Treasury yields weigh on stocks
The 10-Year Treasury yield rose 4 basis points to 5.31%, close to its highest level since 2002. Gold prices fell 1.53% to $4,100.75 in the same session. Industrials and basic materials led sector declines, while healthcare and consumer defensive stocks gained.
Caterpillar drags on the Dow
Caterpillar fell over 6%, the weight that pulled the Dow down the hardest, after an analyst downgrade and investor jitters over artificial intelligence pushed the industrial leader lower. Deere slid after news of a federal inquiry into its agricultural equipment business practices. Webull tumbled 20% on reports that a congressional committee had raised concerns about its China connections. ZIM Integrated Shipping Services climbed after raising its 2026 full-year guidance.
Concerns about renewed attacks on crude supply chains, along with potential hurricane risk, also pushed oil prices higher. The Federal Reserve is set to release the minutes from its September meeting this afternoon, and investors will look for clues on the direction of future rate hikes.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
