Dow closes more than 200 points lower Tuesday after 10-year Treasury yield tops 4%: Live updates

The Dow Jones Industrial Average fell Tuesday as rates ticked higher and Wall Street pored through the latest batch of fourth quarter earnings. Investors also awaited more data that can give better glimpse into the state of the American consumer.

The Dow declined 303 points, or 0.8%. The S&P 500 and Nasdaq Composite slipped 0.5% and 0.4%, respectively.

Markets were closed on Monday for Martin Luther King Jr. Day.

Boeing shares tumbled 7.9% after Wells Fargo downgraded the company to equal weight from overweight, amid ongoing troubles with its 737 Max 9 model. Meanwhile, AMD shares jumped nearly 8% following upbeat analyst commentary on semiconductor demand. The chipmaker trying to catch Nvidia in the A.I. race rose to a new 52-week high, and is scheduled to report its quarterly results on Jan. 30.

The benchmark 10-year Treasury note yield jumped 12 basis points to 4.071% after Federal Reserve Governor Christopher Waller indicated in a speech that the central bank may ease monetary policy slower than Wall Street had anticipated.

Several major banks released their quarterly earnings Tuesday morning. Goldman Sachs reported better-than-expected profit and revenue, while Morgan Stanley posted a revenue beat in the fourth quarter. Shares of Goldman Sachs inched up 0.1%, while Morgan Stanley declined 4.7%.

“So far, it seems like the consumer is holding up fairly well. If you look across, the banks that have reported, in general, spending’s okay. Credit card balances are up, but [we’re] also getting more account growth,” said Tom Hainlin, senior investment strategist at U.S. Bank Asset Management.

Roughly 30 S&P 500 companies have reported calendar fourth-quarter results thus far. Of those, 78% have beaten earnings expectations, according to FactSet.

Investors are also looking ahead to December retail sales data out Wednesday, which could fuel recessionary fears and concerns about economic growth if U.S. consumer spending sees a cooldown.