US stocks tumble as Powell warns of more inflation and Treasury yields hit 3-month high

Jerome Powell, Chair of the Federal Reserve. Pool/Getty Images
US stocks fell on Tuesday due to a continued rise in US Treasury yields. This has hurt mega-cap tech stocks.

Jerome Powell, the Fed Chairman, will testify before Congress that an inflation jump could last longer than anticipated.

On Tuesday, the 10-year US Treasury yield soared to a record high of over 1.50% after three months.

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US stocks dropped on Tuesday due to a rise in US Treasury yields. This was ahead of Fed Chairman Jerome Powell's testimony before Congress.

In prepared remarks, Powell will inform Congress that the drivers of the recent rise in inflation could last longer than anticipated. These drivers include disruptions to the global supply chain, and tightened labor markets.

As US Treasury yields rose, mega-cap tech stocks such as Microsoft and Apple continued to decline by more than 2%. The 10-Year US Treasury yield reached a three-month peak of 1.53%.

Here are the US indexes shortly after the 9:30 AM. ET opens on Tuesday

Oil prices rose above $80 for only the third time in three years because of a shortage of natural gas, which spurs demand.

Goldman Sachs has lowered its China GDP forecast 2021 to 7.8%, down from 8.7%. This is in response to the economic energy crisis that represents another growth shock.

Ford's stock rose as high as 5% following the company's announcement of four new electric vehicle and battery plants, which will cost more than $11 million.

Alibaba announced that it would block the sale of crypto mining equipment beginning next month in compliance with China's ongoing crackdown on cryptocurrencies.

West Texas Intermediate crude oil rose as high as 0.95% to $76.17 per barrel. Brent crude oil, the international benchmark for oil, rose 0.62% to $80.02 per barrel.

Gold dropped as high as 0.97% to $1,735.00 an ounce.