Stocks plunge as US Treasury yields rise

Markets fell on Tuesday.

The S&P 500 plunged 2.0 percent, the STOXX Europe 600 sank 2.2 percent and the Nikkei 225 fell 0.2 percent.

The US 10-year Treasury yield rose, hitting 1.567 percent.

“The market’s been steadily coming around to the reality that yields were awfully low relative to the fundamentals,” said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research.

Some analysts think stocks could slide further.

CFRA chief investment strategist Sam Stovall said “with tech being down 2.5% with interest rates higher, I would think there is still more downside potential”.