Wall Street declined on Tuesday, led by a selloff in industrials, materials and technology shares, after 10-year Treasury yields hit the highly anticipated 3% mark for the first time in four years.
The Dow Jones Industrial Average fell 425 points, or 1.74%, to 24,024, the S&P 500 lost 36 points, or 1.34%, to 2,635 and the Nasdaq Composite dropped 121 points, or 1.7%, to 7,007. The S&P 500 and the Dow fell the most in two-and-a-half weeks.
The selling pressure came after the 10-year Treasury yield briefly touched the psychologically important 3% level for the first time in four years.
Technology and industrial stocks weighed on the major indexes, with Alphabet Inc, Facebook Inc, 3M Co and Caterpillar Inc all falling more than 3.5%.
Alphabet shares fell 4.8%, erasing the stock’s year-to-date gains as rising expenses and shrinking margins overshadowed the company’s better-than-expected profit.
Industrial bellwether Caterpillar tumbled 6.20% on fears of increasing steel prices, despite the company’s beating earnings estimates due to strong global demand.
Diversified industrial manufacturer 3M was the biggest drag on the Dow Jones Industrial Average. Shares fell 6.83% after the company posted in-line profits as lower taxes offset a miss in operating profits and the company lowered its 2018 earnings forecast.
Apple Inc shares lost 1.39% as worries over softening demand for high-end smartphones were underscored as Corning Inc reported a drop in screen glass sales for the first time in at least four quarters.
Other technology stocks in the FAANG group, Facebook, Amazon.com Inc and Netflix Inc, also weighed on the Nasdaq.
Shares of Lockheed Martin Corp after the company reported better-than-expected first-quarter earnings but did not raise its 2018 cash-flow projections.
In Asia, share markets were trading lower on Wednesday in morning session, following an overnight drop in US stocks.
Japan's Nikkei 225 fell 0.5% while the Topix index was down 0.47%. In South Korea, the Kospi declined 0.72%. In greater China, Hong Kong’s Hang Seng Index was down 1.18%, while China’s Shanghai Composite Index fell 0.54%.
Australia and New Zealand markets are shut for the Anzac day public holiday.