Wall Street declines by over 1% as US yields surge

US stock indices declined on Tuesday as US treasury yields climbed, as the odds of a Fed interest rate cut in June gained steam on the back of strong US manufacturing and inflation data.

US 10-year treasury yields rose by 6.2 basis points to 4.39%, while two-year yields stabilized at 4.722%. 

Fed Chair Jerome Powell said in a San Francisco conference that policymakers shouldn’t rush into interest rate cuts, especially as the US economic performance proves resilient, while inflation remains above 2%.

On trading, Dow Jones fell 1.2%, or 480 points as of 16:14 GMT to 39,086, while S&P 500 fell 1%, or 53 points to 5190, while NASDAQ slipped 1.4%, or 222 points to 16,174.