US stocks fell on Tuesday as investors digested the recent bond market sell-off and braced for the next wave of earnings reports.
The S&P 500 (^GSPC) fell about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) and Nasdaq Composite Index (^IXIC) fell nearly 0.1%.
Stocks are under pressure Growing doubts That the Fed will continue to cut interest rates aggressively – or even stay steady in November. A strong economy, cautious federal policy, and concerns about the financial impact of Republican candidate Donald Trump's election victory are factors at play.
Read more: What a Fed rate cut means for bank accounts, CDs, loans and credit cards
Amid the uncertainty, the 10-year Treasury yield (^TNX) settled around 4.2% after sharp gains on Monday helped push it above that level for the first time since July. The bond sell-off has affected interest rate-sensitive stocks such as real estate, where rising yields are usually a catalyst for equity withdrawals.
On the earnings front, General Motors (GM) raised its guidance for the third time this year as upbeat electric vehicle sales helped drive quarterly earnings and revenue. GM shares rose more than 9%. Elsewhere in earnings, GE Aerospace (GE) shares fell more than 7% and Verizon shares fell about 5% on mixed Q3 reports.
Meanwhile, anticipation is building for Tesla's ( TSLA ) earnings on Wednesday as Wall Street debates whether the “Magnificent Seven” tech giants will lead the stock's next leg higher.
Despite rising yields, gold prices rose (GC=F), on track to reclaim the record high reached on Monday. The gains came as investors searched for safety as the US presidential elections approached and tensions continued to escalate in the Middle East.
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