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Stock prices fell on Tuesday due to rising bond yields.
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Investors are adjusting their outlook for Fed rate cuts.
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As for earnings, Tesla, UPS and Boeing will report later this week.
US stocks headed for their second straight losing session, with major indexes tumbling on Tuesday morning due to a rise in bond yields.
Investors were put off by a sharp rise in 10-year U.S. Treasury yields, which rose 11 basis points on Monday. Yields on major bonds rose above 4.2% for the first time since July.
Although rates have held steady since then at around 4.176%, the rise signals traders have abandoned hopes of a steep easing cycle from the Federal Reserve. Comments from Fed officials this week calling for “gradual” and “modest” cuts after a string of good economic data led investors to reconsider their expectations.
There will be more comment from Philadelphia Fed President Patrick Harker on Tuesday. Five other officials will speak throughout the week.
Investors are also keeping an eye on further earnings releases. Tesla will report its third-quarter results on Wednesday. Boeing will also report on Wednesday, while UPS will report results on Thursday.
Here’s where the US indexes stood at the 9:30 a.m. opening bell on Tuesday:
Here’s what else happened today:
In commodities, bonds and crypto:
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West Texas Intermediate crude rose 0.98% to $71.25 a barrel. Brent crude, the international benchmark, rose 0.74% to $74.84 per barrel.
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Gold rose 0.49% to $2,752.30 an ounce.
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The interest rate on ten-year government bonds remained virtually stable at 4.176%.
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Bitcoin fell 0.82% to $67,078.
Read the original article on Business Insider
