Stocks fell Tuesday as U.S. Treasury yields rose to their highest levels since 2007, sparking concerns of a potential recession. The Dow Jones Industrial Average dropped more than 400 points, while the S&P 500 Index and Nasdaq Composite lost about 1.4% and 1.9%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Driving market moves, the 10-year Treasury yield jumped to 4.81% Tuesday, its highest level in 16 years as the benchmark continued to climb higher in response to the Federal Reserve's higher-for-longer interest rate policy. The 30-year Treasury yield also rose to 4.947%, marking its highest level since 2007.
Rising Treasury yields were also met with soaring mortgage rates on Tuesday, showing signs that the housing market may cool as more potential buyers are priced out. The average 30-year fixed mortgage rate rose to 7.72% on Tuesday, its highest level in more than two decades.
Also in the spotlight, the August Job Openings & Labor Turnover Survey (JOLTS) showed there were more U.S. job vacancies than expected, the Labor Department said Tuesday, signaling a still resilient labor market.
The month's survey showed 9.6 million openings -- adding nearly 700,000 positions since July and coming in well above economist estimates for 8.8 million. Hires, however, only grew slightly, increasing by 35,000 month-to-month to 5.857 million. Moreover, quits, total separations and layoffs were little changed.
"It is now the first week of October, and data has been stronger," wrote Matthew Graham, chief operating officer at Mortgage News Daily, quoted by CNBC. "This morning's JOLTS is the biggest, baddest confirmation so far this week, and it's pushing yields to fresh long-term highs. Pretty simple stuff, actually, even if unpleasant and unfortunate for fans of low rates."
For Tuesday, shares of Point Biopharma
Bank of America analyst Wamsi Mohan double upgraded HP
"In our opinion, this multiple is justified given it balances near-term pressures the company is facing vs. long term opportunities," wrote Mohan in a note Tuesday. "Positives drivers include an improving PC market backdrop, improved profitability from cost actions and stable to higher free cash flow over the next several years."
For Wednesday, market participants are gearing up for ADP's jobs report for September, which is expected show 150,000 new U.S. private payrolls. ADP's report comes days before the Labor Department's "official" jobs reading for the month due out Friday morning.