Dow logs longest losing streak in a year as stocks slump broadly
The Dow Jones Industrial Average marked its longest losing streak in a year, as stocks ended the session sharply lower on Tuesday on the back of higher Treasury yields. The 10-year Treasury yield hit the psychologically important 3% for the first time in more than four years Tuesday, but retreated again toward the end of the session. Higher yields are seen as a headwind for equity investors, as they could mean higher borrowing costs for corporate America going forward. The Dow dropped 1.7%, marking fifth loss in a row and worst one-day drop since April 6. The sell-off was particularly driven by materials and industrials stocks. The S&P 500 closed 1.3% lower, also its worst daily percentage drop in 2.5 weeks. Eight of eleven of the S&P's sectors ended in the red, with the exception of utilities and telecommunications. The tech-focused Nasdaq Composite Index was down 1.7%, marking its worst daily drop since April 6. In individual stocks, construction equipment maker and Dow component Caterpiller Inc. was in focus as its stock sold off despite better-than-expected earnings. 3M CO. dropped as it guided to lower results.
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