U.S. stocks fell on Tuesday, continuing a three-week losing trend, as bond rates surged, raising fears the Federal Reserve's aggressive tightening campaign will end in pain for the economy.
The Dow Jones Industrials lost 123.26 points to start the shortened week at 31,195.18
The S&P 500 dipped 22.2 points to 3,902.06
The NASDAQ Composite dropped 121.66 points, or 1.1%, to 11,509.20, weighed down by tech stocks reversing earlier gains, such as Apple, Tesla, Nvidia and Microsoft.
Shares of Bed Bath & Beyond slipped more than 14% following news that CFO Gustavo Arnal died by suicide Friday, adding to days of losses. FedEx slumped more than 2.6% after Citi downgraded the company and slashed its price target.
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 3.32% from Friday's 3.19%. Treasury prices and yields move in opposite direction.
Oil prices regained 34 cents to $87.21 U.S. a barrel.
Gold prices staggered $7.60 to $1,715.00 U.S. an ounce.