NEW YORK — Wall Street is back to falling on Tuesday, even as pressure from the bond market relaxes a bit. The S&P 500 was 0.7% lower in early trading, coming off a rare gain and on track for its fifth drop in six days. The Dow pulled back 176 points and the Nasdaq composite fell 0.8%.
The growing understanding that rates will stay higher for longer has pushed yields in the bond market up to their highest levels in more than a decade. That in turn makes investors less willing to pay high prices for all kinds of investments, particularly those seen as the most expensive or making their owners wait the longest for big growth.
In China, concerns continued over heavily indebted real estate developer Evergrande. The property market crisis there is dragging on China’s economic growth. “It’s important to acknowledge that tackling the housing issue is much more challenging in practice than in theory. This difficulty is why property developers are still struggling two years into the Evergrande debt crisis, and potential homebuyers are hesitant to enter the market,” he added.