U.S. stocks slumped on Tuesday in a volatile trading session at the start of the holiday-shortened week as investors weighed what strong economic data and rising rates mean for the Federal Reserve's aggressive tightening campaign.
The Dow Jones Industrials tumbled 173.14 points to end Tuesday at 31,145.30, but was off lows of the day boosted by defensive stocks such as Johnson & Johnson and Coca-Cola.
The S&P 500 slipped 16.07 points to 3,908.19
The NASDAQ Composite fell backward 85.95 points to 11,544.91, notching its seventh day of losses, its longest since 2016.
The moves came after August ISM data Tuesday morning was stronger than expected, coming in at 56.9 versus expectations of 55.5. The report follows Friday's jobs release, which also beat Wall Street's expectations, showing a more solid U.S. economy than anticipated.
Treasury prices withered, raising yields to 3.34% from Friday's 3.19%. Treasury prices and yields move in opposite direction.
Oil prices forfeited 24 cents to $86.63 U.S. a barrel.
Gold prices staggered $11.30 to $1,711.30 U.S. an ounce.