US stocks fell for a second consecutive session on Tuesday as Treasury yields reached fresh multi-year highs before easing later in the day.
The Dow Jones Industrial Average fell 131.59 points, or 0.26%, to 51,349.92. The S&P 500 slipped 0.16% to 7,670.84, while the Nasdaq Composite edged 0.09% lower to 26,797.54.
Bond yields initially surged, with the US 30-year Treasury yield climbing above 5.6% to its highest level since 2002, before closing around 5.57%. The 10-year yield briefly topped 5.29% before ending broadly flat at around 5.24%.
Yields eased from their highs after New York Fed President John Williams indicated there was “no urgency” to raise interest rates further, tempering expectations for additional Federal Reserve tightening.
Bank stocks were among the weaker performers, with JPMorgan Chase, Morgan Stanley and Bank of America declining.
For September, the S&P 500 is down 0.2% and the Dow has fallen 3.5%, while the Nasdaq has gained more than 1%. For the third quarter, the S&P 500 and Nasdaq are up around 2%, while the Dow has fallen almost 2%.
Australian Market Outlook
Australian shares are set to open modestly lower, with S&P/ASX 200 futures down 5 points, or 0.1%, to 8,747.
The Australian dollar remains near a two-month low after investors reduced expectations for further Reserve Bank rate increases.
Global bond yields remain a key focus for the local market, although the pullback in US yields from their session highs could provide some relief for equities.
