US stocks fall on the back of soaring Treasury yields
Wall Street stocks tumbled on Tuesday as Treasury yields hit a 16-year high, feeding worries about elevated interest rates that could weigh on the economy. The Dow Jones slipped 1.3 percent to 33,002. The S&P 500 dropped 1.4 percent to 4,229, while the Nasdaq fell 1.9 percent to 13,059. Stocks stumbled after Treasury yields surged on the back of a job openings report that "signalled the labour market is not breaking," said Edward Moya of the OANDA trading platform. The 10-year Treasury yield has hit its highest level since 2007, and the figure is closely watched as it can be used as a benchmark for other interest rates. A cooling labour market was expected to emerge, after multiple interest rate hikes by the Federal Reserve over the past year. But the August job openings data showed a large pickup with vacancies, Moya added in a note. A hotter-than-hoped labour market could add pressure on central bank policymakers when they mull further interest rate hikes, fuelling investor jitters. Looking ahead, traders will be eyeing the Labour Department's employment report due on Friday, to keep tabs on the state of the US job market. (AFP)