Dow Jones falls over 420 points

US stocks set to open little changed as 10-year yield approaches 3

US stocks set to open little changed as 10-year yield approaches 3

This story will be updated as new information becomes available.

Other technology stocks in the FAANG group, Facebook, Amazon.com Inc and Netflix Inc, also weighed on the Nasdaq. "This market rally for the last nine years has been driven by low interest rates, accommodating monetary policy and excess liquidity", said Oliver Pursche, chief market strategist for Bruderman Asset Management in NY. 3M dropped 6.8 percent. Facebook's first-quarter revenue is expected to come in at $11.4 billion - a 43 percent spike from the year-ago quarter.

The Dow Jones Industrial Average fell 425 points, or 1.74%, to 24,024, the S&P 500 lost 36 points, or 1.34%, to 2,635 and the Nasdaq Composite dropped 121 points, or 1.7%, to 7,007. It was down as much as 619 earlier.

Wall Street declined on Tuesday, led by a selloff in industrials, materials and technology shares, after as 10-year Treasury yields hit the highly anticipated 3% mark for the first time in four years.

The Dow is down 270.53 points, or 1.1 percent.

Caterpillar shares were down 6.2% after the company said on a conference call that first-quarter adjusted profit per share will be the "high watermark" for the year. Bloomberg News reported that the companies are close to a deal and the shares rose 2.2 percent to $163.53.

Alphabet shares fell 4.8%, erasing the stock's year-to-date gains as rising expenses and shrinking margins overshadowed the company's better-than-expected profit.

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The Dow was down 540 points, or 2.2 percent, at 23,918.

The Toronto Stock Exchange's S&P/TSX composite index closed down 75.06 points, or 0.48 per cent, at 15,477.00.

The yield on the 10-year note is a benchmark for many kinds of interest rates including mortgages, and it's been climbing because investors expect greater economic growth and faster inflation. That helped smaller company stocks, which rose early on and later took smaller losses than their larger peers. Verizon, Harley-Davidson and Fifth Third Bancorp all rose. Google parent Alphabet fell almost 5 percent and closed the day at $1,022.64.

3M's drop had an outsized impact on the Dow Jones Industrial Average.

OVERSEAS: Germany's DAX lost 0.2 percent while the French CAC 40 added 0.1 percent. Investors are now adjusting their positions to see how the economy responds to rising interest rates, what corporations will do with those earnings, and how higher levels of inflation affect the mix.

On the economic front, US consumer confidence rebounded in April, according to the Conference Board, as short-term optimism improved and the share of consumers expecting their incomes to decline in the coming months hit its lowest level since December 2000.

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