The 10-year Treasury note (http://www.marketwatch.com/story/heres-what-it-means-for-the-market-that-the-us-10-year-yields-3-2018-04-24) yield hit a new high at 3.026%, not seen since December 31, 2013, according to FactSet data. The Russell 2000 index declined 12 points, or 0.8 percent, to 1,549, about half as much as the S&P 500, which tracks large US companies.
The S&P is down 30.74 points, or 1.2 percent.
Boeing jumped 4.2 percent, helping the Dow Jones industrial average break a five-day losing streak. Hong Kong's Hang Seng lost 1.1 percent and the South Korean Kospi lost 0.6 percent. Its stock gained 4.2 percent to $342.86 and railroad operator Norfolk Southern climbed 8.1 percent to $145.96 after it, too, surpassed analyst projections. "Both however are selling off while noting that the tariffs will have a negative impact on profits", said David Kudla, Founder, CEO, and Chief Investment Strategist at Mainstay Capital Management.
Jack Ablin, founding partner of Cresset Wealth, said,"For 10 years, rates were kept artificially low to encourage risk taking, once we get to more normal levels, that's going to become a challenge for equities as an asset class".
The Dow Jones industrial average fell more than 400 points on Tuesday amid fears of rising interest rates and Caterpillar hinting at a halt in economic growth.
USA stocks slid on Tuesday as 10-year Treasury yields hit the highly anticipated 3 per cent mark for the first time in four years, stoking concerns over higher borrowing rates for companies already facing rising costs, and as quarterly results failed to deliver positive outlooks. The Fed raised rates in March and is expected to do so at least twice more in 2018, though a growing number of central bank members are predicting a third additional hike by year's end.
Police taze 'combative' American Airlines passenger
On Sunday evening, a disagreement occurred between two passengers on American Airlines flight 2446 from Miami to Chicago O'Hare. Video shot inside the terminal shows the man still arguing with officers as they load him onto a security golf cart.
Economic data released Tuesday morning included a reading on home sales, which surged to a near four-year high.
The Nasdaq is down 138.77 points, or 1.9 percent.
The dollar rose to 109.34 yen from 108.67 yen. The Nasdaq 100 outpaced the market's general losses on Tuesday, diving 2.1%. The euro fell to $1.2175 from $1.2237. Brent crude, used to price global oils, fell 1.1 percent to $73.86 per barrel in London. 3M, the maker of scotch tape and Post-it notes, saw its shares fall by 6.8 percent.
Gold fell 0.7 percent to $1,323.70 an ounce and silver sank 1.1 percent to $16.52 an ounce. Heating oil rose 0.4 percent to $2.14 a gallon. Japan's benchmark Nikkei 225 rose 0.9 percent, helped by the weaker yen.
In European trading, London's FTSE was down 0.67%.