: Dow, S&P 500 book worst drop of 2023 as Fed ‘pivot’ trade fades

U.S. stocks booked their worst day in more than two months on Tuesday as investors emerged from the long holiday weekend in a gloomy mood. The Dow Jones Industrial Average DJIA tumbled about 697 points, or 2.1%, ending near 33,129, while the S&P 500 index SPX fell 2% and the Nasdaq Composite Index COMP closed down 2.5%, according to preliminary FactSet data. The drop for all three equity indexes was the worst on a daily percentage basis since Dec. 15, according to Dow Jones Market Data. It also cut the S&P 500’s 2023 gain by roughly half, to about 4.1%. The selloff in risk assets came after several Federal Reserve speakers recently stressed the need to keep bringing stubbornly high inflation levels down toward the central bank’s 2% annual target. Treasury yields on Tuesday also jumped, with the 2-year rate BX:TMUBMUSD02Y climbing to 4.729%, its highest level since 2007. The 10-year Treasury yield BX:TMUBMUSD10Y soared 12.6 basis points to 3.953%, its highest since November.

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