Lucas Jackson/Reuters
The market fell on Tuesday due to lower US tech stocks, as interest rates rose amid a continuing debt ceiling standoff.
On Tuesday, the 10-Year US Treasury yield reached a record high of 1.56%. This is its highest level since June.
Jerome Powell, Fed Chairman, warned Congress that an inflation spike could last longer than anticipated.
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The US stock market plunged Tuesday with the Nasdaq 100 leading lower, amid an increase in interest rates and inflation fears.
On Tuesday, the 10-year US Treasury yield soared to 1.56%. This is its highest level since June. Fed Chairman Jerome Powell (and Treasury Secretary Janet Yellen) testified before Congress. Powell said that an inflation spike could be more prolonged than anticipated due to inflation pressures.
Yellen informed Congress that if the US debt limit is not raised before the Treasury runs dry, which is expected to happen around October 18, interest rates could continue rising as investors lose faith in America’s ability to meet its obligations.
Yellen stated to Congress that the US would inflict a "financial crises" if it didn't raise its debt ceiling by the deadline.
Here are the US indexes at 4:00 p.m. ET closes on Tuesday
Stocks of mega-cap tech stocks Alphabet and Facebook, Apple, Microsoft, and Alphabet all fell more than 2 percent in Tuesday trades.
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 before eventually falling to 0.90%. Brent crude oil, the international benchmark for oil, rose 0.62% to $80.02 a barrel before plummeting as high as 1.19%.
Gold dropped as much as 1.05% to $1,733.60 an ounce.
