Stocks fall hard amid rising interest rates and earnings fears

The Dow Jones Industrial Average plunged 425 points Tuesday to close at 24,024.

The yield on the 10-year Treasury reached 3 percent for the first time since January 2014. Investors are now adjusting their positions to see how the economy responds to rising interest rates, what corporations will do with those earnings, and how higher levels of inflation affect the mix.

Canada's main stock index fell on Tuesday as lower oil prices weighed on energy shares, while investors anxious about the prospect of higher global borrowing costs after the benchmark US 10-year Treasury note yield hit 3 per cent for the first time in four years.

Caterpillar Chief Financial Officer Brad Halverson said during a call with investors that first quarter earnings "will be the high watermark for the year".

In commodities, oil prices declined sharply on Tuesday as investors awaited weekly inventory data from the US government. The futures on the U.S. oil variety WTI dropped its price by 1.14% to 67.86 United States dollars per barrel.

The energy group fell 0.6 per cent as oil prices declined.

The Dow initially rose more than 130 points on strong earnings reports from Caterpillar and 3M before swiftly reversing.

Google's parent company Alphabet dropped 4.8 per cent, which is nearly all of its gains this year.

The major USA indexes opened higher in response to better than expected earnings but gains quickly diminished after the yield on the 10-year Treasury note climbed above 3% for the first time since 2014.

Stocks are falling sharply on Wall Street as big technology and industrial companies take heavy losses.

Want to know why the Dow Jones Industrial Average and other major indexes are doing what they're doing?

Some companies rose after reporting solid results.

The S&P 500 index fell 5 points, or 0.2 percent, to 2,664.

Declining issues outnumbered advancers on the NYSE for a 1.79-to-1 ratio and for a 1.60-to-1 ratio on the Nasdaq.

Twitter reversed course to trade down 4.9 percent after reporting its second profitable quarter and topping Wall Street estimates for revenue and monthly active users.


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