Dow drops 600 points in broad market selloff as rates climb to highest levels in months: Live updates

Tuesday saw a decline in U.S. stocks as higher rates continued to weigh on investor mood and the most recent round of retail reports sparked worries about the status of the consumer.

The Dow Jones Industrial Average experienced its largest decline since Dec. 15, when it sank 2.3%, losing 630 points, or 1.9%. The S&P 500 saw its lowest day since Dec. 15, when it dropped 2.5%, falling 1.77%. The tech-focused Nasdaq Composite fell 2.1%.

The 2-year rate increased to 4.7%, while the benchmark 10-year Treasury yield increased to 3.9%. In addition, both rates rose to levels not seen since November as traders struggled with data on inflation that was hotter than anticipated. Investors fear that if inflation remains persistent, the Federal Reserve will hold interest rates higher for longer, which might send the economy plummeting.
The market appears [composed] despite the fact that it is currently declining; this is simply the result of certain investors getting ahead of themselves, according to Kilburg. "The market is experiencing some emotion, but this downturn will be purchased. It remains buoyant.

Home Depot had the worst performance of all the Dow members, dropping 6% after reporting weaker-than-expected fourth-quarter revenue. The business also provided a somber prognosis.

The Fed is expected to publish the minutes of its meeting from January 31 and February 1 on Wednesday. After the meeting, the central bank raised interest rates by 25 basis points.