Wall Street tumbles as US stocks fall toward their worst day in a month
NEW YORK AP Wall Street is tumbling Tuesday as rising pressure from the bond field pulls U S stocks further from their records The S P sank and was on track for its worst day in a month The Dow Jones Industrial Average was down points or as of p m Eastern time and the Nasdaq composite was lower All three are still relatively close to their of late set all-time highs Big Tech companies were certain of the heaviest weights on the area They ve been soaring for years on expectations that they ll continue to dominate the financial market but they also shot so high that critics say their prices became too expensive Nvidia whose chips are powering much of the world s move into artificial-intelligence equipment fell and was the single strongest force pulling the S P lower Amazon sank and Alphabet dropped The overall stock area felt pressure from rising yields in the bond region where the -year Treasury yield climbed to from late Friday When bonds are paying more in interest investors are less willing to pay high prices for stocks Longer-term bond yields are on the rise around the world in part because of worries about how demanding it will be for governments to repay their growing mountains of debt In the United States longer-term Treasury yields are feeling added pressure from President Donald Trump s attacks on the Federal Reserve for not cutting interest rates sooner The fear is that a less independent Fed will be less likely to make the unpopular decisions needed to keep inflation under control over the long term such as keeping short-term rates higher than investors would like Tuesday was also the first opportunity for trading after a federal appeals court ruled late Friday that Trump overstepped his legal authority when announcing sweeping tariffs on almost every country on Earth though it left the tariffs in place for now Tariffs have certainly created confusion across the global financial system and may have hurt the U S job domain But less income from them could also force the U S establishment to borrow more to pay its bills according to Scott Wren senior global realm strategist at Wells Fargo Financing Institute In another signal of increasing worries in financial markets the price of gold rose after touching a record The metal has often provided a haven for investors in times of uncertainty Treasury yields briefly trimmed their gains after a document on Tuesday reported U S manufacturing shrank by more last month than economists expected Several companies explained the Institute for Supply Management that tariffs are continuing to make conditions chaotic Too much uncertainty for us and our customers regarding tariffs and the U S global market system announced one company in the chemical products industry noted while noting that orders across majority of product lines have weakened The worse-than-expected facts on manufacturing could give the Federal Reserve more leeway to cut its main interest rate for the first time this year at its next meeting in a couple of weeks That s the widespread expectation among traders though several economic reports coming this week could change things The highlight for the week is coming on Friday when economists expect a review to show that U S employers upped their hiring by a bit last month Last month s weaker-than-expected jobs analysis raised worries about the economic activity and cranked up expectations for coming cuts to rates by the Fed On Wall Street Constellation Brands tumbled after the beer wine and spirits company warned that it s seen a slowdown in purchases of its high-end beers particularly among its Hispanic customers That pushed it to slash its forecast for profit this fiscal year Kraft Heinz fell after announcing that it s splitting into two a decade after a merger of the brands created one of the biggest food companies on the planet One of the companies will include shelf stable meals and include brands such as Heinz Philadelphia cream cheese and Kraft Mac Cheese The other will include the Oscar Mayer Kraft Singles and Lunchables brands The official names of the two companies will be disclosed later Among the sphere s scant gainers was PepsiCo which rose after an financing firm revealed it sent suggestions to the company s board to reaccelerate its expansion and boost financial performance The investor Elliott Management has a history of buying into companies and then pushing for big changes that can lead to better stock performance In stock markets abroad indexes slumped across Europe with Germany s DAX losing That was after a more mixed finish in Asia where indexes rose in Seoul but fell in Hong Kong
