The Dow and S&P 500 booked a sixth straight day of declines on Tuesday, as bond yields rose and stocks gave up earlier gains. The Dow Jones Industrial Average DJIA, 0.35% fell about 123 points, or 0.4%, to end near 29,136, its lowest closing level since November 2020, according to Dow Jones Market Data. The S&P 500 index SPX, 0.30% shed 0.2% to record its longest losing streak since Feb. 28, 2020. The technology-heavy Nasdaq Composite Index COMP, -0.02% eked out a 0.3% gain, after flipping between modest gains and losses. Recent turbulence in stocks has been attributed to fears about the Federal Reserve potentially inducing a “hard landing” for the U.S. economy as it looks to tame high inflation through sharply higher interest rates and tighter monetary policy. The rate on the 10-year Treasury bond almost touched 4% on Tuesday, with the benchmark rate spotted at 3.963% at 3 p.m. Eastern, its highest since April 2010, according to Dow Jones Market Data. Investors also could pick up yields of 4.3% on Tuesday on 2-year Treasurys, another factor that has weighed on stocks. But higher benchmark rates also mean increased borrowing costs for households and businesses at a time when high inflation has been stretching paychecks and also could dampen corporate earnings.
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