U.S. stocks whiplashed on Tuesday in a volatile trading session at the start of the holiday-shortened week as investors weighed what strong economic data and rising rates mean for the Federal Reserve’s aggressive tightening campaign.
The Dow Jones Industrial Average fell 103 points, or 0.33%, climbing off lows of the day boosted by defensive stocks such as Johnson & Johnson and Coca-Cola. The S&P 500 slipped 0.24% and the Nasdaq Composite fell 0.47%, weighed down by falling tech stocks.
At the same time, bond yields surged, adding to the rout in stocks. The yield on the U.S. 10-year Treasury jumped as much as 0.162 percentage point to 3.353% before settling lower, up around 0.13 percentage point at 3.342% as investors sold bonds. Yields move inversely to prices.
The moves came after August ISM data Tuesday morning was stronger than expected, coming in at 56.9 versus expectations of 55.5. The report follows Friday’s jobs release, which…