Stocks sank Tuesday, with technology stocks leading the way lower as investors nervously eyed a swift rise in U.S. Treasury yields.
The Nasdaq, a proxy for technology and growth stocks, underperformed against the other two major stock indexes, dropping more than 2.8% by market close in its worst day since March. The S&P 500 also dropped 2%, while the Dow shed more than 550 points, or 1.6%. A new disappointing report on consumer confidence in September added to the risk-off mood in markets, with the Conference Board’s closely watched Consumer Confidence Index dropping to the lowest level since February as concerns over the coronavirus lingered.
The rapid rotation away from growth and technology stocks also came as Treasury yields added to recent gains. The yield on the benchmark 10-year note (^TNX) jumped more than 5 basis points to top 1.54%, reaching its highest level since June.
“The prospect of higher energy prices, fueling…