Jack Ablin, chief investment officer at BMO Private Bank in Chicago, said it’s only natural that investors feel a little nervous after a rise in long-term interest rates.
The S&P 500 index has lost 2.6 percent since setting a record high on May 21. The next day, minutes from a Fed meeting suggested the central bank could decide to scale back its stimulus as early as June if the economy picks up.
In government bond trading Tuesday, the yield on the 10-year Treasury note touched a 14-month high of 2.29 percent before heading back down to 2.18 percent in late trading, according to Tradeweb. That was down slightly from 2.21 percent late Monday.
The dollar fell sharply against the Japanese yen, sliding to 96.22 yen from 98.70 yen late Monday.
In commodities trading, crude oil fell 39 cents to $95.38 a barrel in New York. Gold dropped $9 to $1,377 an ounce.
The Nasdaq composite fell 36.82 points to 3,436.95, a drop of 1 percent.
Among other companies making big moves:
— Sprint Nextel gained 17 cents, or 2.4 percent, to $7.35 after Japan’s Softbank raised its offer for the company. Softbank’s total bid for the country’s third-largest phone carrier is now valued at $21.6 billion, still short of the $25.5 billion offered by Dish Network.
— Lululemon Athletica plunged $14.43, or 18 percent, to $67.85 after news broke late Monday that the yoga-clothing maker’s CEO will step down as soon as the company’s board finds a replacement.
— Dole Foods soared 22 percent after the company’s CEO and his family offered to take the fresh fruit and vegetable company private at $12 per share. That bid values the company at $1.1 billion. The company’s stock gained $2.26 to $12.46
— Corinthian Colleges sank 32 cents, or 12 percent, to $2.46. The company disclosed that it’s under investigation by the Securities and Exchange Commission and has been asked to turn over information on student attendance, recruitment and defaults on federal loans. The Santa Ana, Calif., company runs the Everest, Heald and WyoTech colleges.