Dow Jones slides 232 points as spiking yields hit Wall Street

NEW YORK, New York — A sharp rise in Treasury yields punctured stock markets in the U.S. on Tuesday, with all the major indices trending southwards.

"Most investors are expecting the 10-year note to vault over 4 percent; I see 4 percent as a ceiling in yields that will help equities recover in March," Jeff Kilburg, KKM Financial founder and CEO, told CNBC Tuesday. "This February flip should be selectively bought."

"Inflation is abating; it’s just not a straight line down from the June CPI 9.1% print," Kilburg said. "February was an intentional Fed-driven backpedal to the FOMO by under-allocated equity investors we witnessed in January."

The bigger loser was the Dow Jones industrials which slid 232.39 points or 0.71 percent to 32,656.70.

The Standard and Poor’s 500 slipped 12.09 points or 0.30 percent to 3,970.15.

The Nasdaq Composite edged down 11.44 points or 0.10 percent to 11,455.54.

Currencies rallied on foreign exchange markets on Tuesday, boosted by higher-than-expected inflation figures in France and Spain. However, the jubilance lost steam in the U.S. session as investors’ focus switched to U.S. Treasuries, with yields hitting their highest levels since November.

The euro jumped well over 1.0600 before retreating to finish the day around 1.0577, down 0.30 percent. The Japanese yen gained 0.04 percent, or 0.052, to 136.18.

The Canadian dollar fell sharply to 1.3641, a loss of 0.49 percent.

The British pound, which easily hurdled the 1.21 mantle earlier, later dived to end the day around 1.2029, down 0.27 percent.

The Swiss franc eased 0.64 percent to 0.9417. Meanwhile, the Australian dollar was only modestly lower at 0.6728, down 0.14 percent. The New Zealand dollar fell 0.25 percent to 0.6182.

Let’s take a look at how markets internationally fared on Tuesday.

Starting with the European indices, The German Dax closed at 15,365.14, down 0.11 percent or 16.29 points. Meanwhile, the CAC 40 index closed at 7,267.93, down 0.38 percent or 27.62 points. The ESTX 50 PR.EUR closed at 4,238.38, down 0.23 percent, or 9.63 points, while the Euronext 100 Index closed at 1,349.62, down 0.43 percent, or 5.85 points.

In Belgium, the BEL 20 index closed at 3,902.21, down 0.16 percent or 6.24 points. In Russia, the MOEX Russia Index closed at 2,222.51, down 0.19 percent or 4.14 points.

In London, the FTSE 100 index closed Tuesday at 7,876.28, down 0.74 percent or 58.83 points.

Moving on to Asia, the Nikkei 225 index closed at 27,445.56, up 0.08 percent, or 21.60 points. In Hong Kong, the Hang Seng closed at 19,785.94, down 0.79 percent, or 157.57 points. And in China, the Shanghai Composite Index closed at 3,279.61, up 0.66 percent, or 21.57 points, while the Shenzhen Index closed at 11,783.80, up 0.70 percent, or 81.85 points.

In Singapore, the STI Index closed at 3,262.63, down 0.02 percent or 0.61 points.

In India, the S&P BSE SENSEX closed at 58,962.12, down 0.55 percent, or 326.23 points, while in Indonesia, the IDX COMPOSITE closed at 6,843.24, down 0.17 percent, or 11.54 points. In Malaysia, the FTSE Bursa Malaysia KLCI closed at 1,454.19, down 0.09 percent, or 1.31 points.

And in South Korea, the Kospi Composite Index closed at 2,412.85, up 0.42 percent or 10.21 points.

Turning our attention to the Australian market, the S&P/ASX 200 index closed at 7,258.40, up 0.47 percent, or 33.60 points.

Finally, in New Zealand, the S&P/NZX 50 advanced 101.25 points or 0.86 percent to 11,894.58.