US open: Stocks head south amid heightened bond yields
Wall Street stocks were in the red early on Tuesday as traders returned from the Labor Day long weekend to rising bond yields and fears that the Federal Reserve's attempts to aggressively tighten monetary policy could result in woes for the economy.
As of 1525 BST, the Dow Jones Industrial Average was down 0.71% at 31,097.18, while the S&P 500 was 0.75% softer at 3,894.99 and the Nasdaq Composite came out the gate 1.16% weaker at 11,495.51.
The Dow opened 221.26 points lower on Tuesday, extending losses recorded ahead of the three-day breather.
The holiday-shortened week's primary focus will likely be a number of speeches from central bank heads and an interest rate decision by the European Central Bank later in the week.
However, as far as Tuesday was concerned, US Treasury yields moved higher at the bell, drawing an amount of investor attention, with the yield on the benchmark 10-year note rising more than 14 points to 3.339%, while its 2-year counterpart rose around 13 basis points to 3.534% - its highest level since November 2007.
On the macro front, a final reading of S&P Global's August manufacturing PMI was revised higher to 51.5, up from a preliminary reading of 51.3 but still pointing to the slowest factory growth since July 2020.
Elsewhere, the Institute for Supply Management's non-manufacturing PMI unexpectedly rose to 56.9 in August, up from 56.7 in July, beating economists' expectations for a print of 55.1 and pointing to the strongest growth in services activity in four months.
In the corporate space, CVS Healthcare announced overnight that it will acquire Signify Health as part of a deal valued at roughly $8.0bn, while Bed, Bath & Beyond shares tumbled in pre-market trading after traders digested news of store closures and layoffs.
No major earnings were slated for release on Tuesday.
Reporting by Iain Gilbert at Sharecast.com