investors began to question lofty share prices.
Stocks tumble Tuesday: 'canary in the cold mine' as inflation bubbles higher
U.S. stocks slumped Tuesday as signs of a strong economy sent bond yields higher and investors began to question lofty share prices.
The broad S&P 500 index slid 1.1% to close at 5,909, while the tech-heavy Nasdaq Composite Index gave up 1.9%, or 375 points, to end at about 19,490. The Dow Jones Industrial Average slipped 0.4% to close at 42,528.
A report on economic activity in the services sector showed growth was increasing, and one measure of prices was at its highest in nearly two years. Separately, the Job Openings and Labor Turnover report from the Labor Department showed 8.1 million jobs in November, much stronger than analysts had forecast.
The 10-year U.S. Treasury note jumped 7 basis points to 4.68 in midday trading. Bond yields rise when prices fall, which is more common in periods of rising inflation.
