Wall Street stocks slide as Treasury yields surge

E-mini S&P 500 Index

The Dow Jones Industrial Average closed at 24,706.41 for a loss of -193.00 points or -0.78%.

The Dow's eight-session winning streak came to an abrupt end as Treasury yields spiked, returning to multi-year highs. The S&P 500 erased 18.68 points, or 0.68 percent, to 2,711.45. The Nasdaq fell 59 points, or 0.8 percent, to 7,351.

The yield on the 10-year Treasury note spiked to a almost seven-year high Tuesday, causing selling in stocks and in particular the ones most sensitive to interest rates.

The yield, a barometer for mortgage rates and other financial instruments, has jumped recently on signs of rising inflation, which sparked market speculation for more rate hikes later this year. US ambassador to China Terry Branstad said the two countries remain "very far apart" regarding a tariff resolution, after which White House economic adviser Larry Kudlow told Politico he supports efforts to reach an agreement. The Russell 2000 index of smaller-company stocks finished flat at 1,600.34. Bond yields tend to rise when investors expect faster economic growth and higher inflation.

The rise in bond yields pulled down shares in real estate investment trusts and other high-dividend-paying stocks.

Stocks are moving mostly lower in midday trading on Wall Street, led by technology and health care companies.

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Apple fell 1 percent, Amazon fell 1.9 percent and Wells Fargo climbed 0.9 percent.

Tuesday ended an eight-day run of consecutive gains for the Dow Jones.

Retail sales reported a monthly increase of 0.3%. The Dow Jones Small-Cap Value TSM Index closed at 10,162.47 for a gain of 1.12 points or 0.01%.

MARKETS OVERSEAS: In Europe, Germany's DAX fell 0.1 percent after new data showed the country's economy slowed in the first quarter. Australia's S&P/ASX 200 lost 0.6 percent.

Stocks are broadly higher at midday on Wall Street as investors hope that trade tensions will ease between the US and China. Mortgage rates, which have been rising this year, tend to track the movement in the 10-year Treasury yield. A move in the yield above 2.9 percent earlier this year triggered a correction for US equities.

The S&P 500 rose 9 points, or 0.3 percent, to 2,736. The Nasdaq composite fell 75 points, or 1 percent, to 7,335.

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