Published on 11 Apr 2022 on MarketWatch

Dow falls more than 400 points, Nasdaq finishes 2.2% lower as Treasury yields keep surging

Dow industrials and the S&P 500 index book their biggest one-day declines since March on Monday, with energy, tech and other growth names bearing the brunt, as Treasury yields soared and investors braced for the next inflation reading and the kickoff of earnings season.

Investors continued to digest the implications of a likely half-point rate hike from the Federal Reserve in May, along with a more rapid unwinding of the central bank’s balance sheet than in the past, as policy makers attempt to rein in inflation that’s at a . Tuesday’s annual headline inflation reading, contained in the consumer-price index report for March, is expected to exceed 8%. The yield on the 10-year Treasury rose 6.6 basis points to 2.78%, its highest level since Jan. 18, 2019, according to Dow Jones Market Data. Meanwhile, the 30-year climbed 7.5 basis points to 2.82%, the highest since May 21, 2019. Ten- and 30-year rates are up, respectively, for the seventh and sixth straight trading days. Yields move in the opposite direction to prices.