Stocks tumble on growth concerns, bond yields slip

Stocks tumble on growth concerns, bond yields slip

Shares slid worldwide on Tuesday as supply chain woes and surging costs hurt corporate earnings and manufacturing output slowed, while Treasury yields dipped as the weakness in equities revived a safe-haven bid for the US government debt.

The stock market's two-day relief rally ended as investors worried about slowing economies. Corporate profit margins have been squeezed, with soaring inflation forcing consumers to cut discretionary spending.

US and euro zone business activity slowed in May. S&P Global attributed the decline in its US Composite PMI Output to "elevated inflationary pressures, a further deterioration in supplier delivery times and weaker demand growth."

Surging freight and raw material prices led Abercrombie & Fitch Co to say it will face headwinds until at least year-end, a day after Snapchat parent Snap Inc said the US economy worsened faster than expected in April.

The economy likely will slump as the Federal Reserve hikes interest rates to stamp out inflation, said David Petrosinelli, senior trader at InspereX.

"It's really all about a hard landing and the Fed really being boxed in the corner with only demand-side tools to help," he said. "They really need to squash demand."

MSCI's gauge of stocks across the globe closed down 0.91 percent. The pan-European STOXX