Nasdaq leads US stocks lower as yields surge and investors’ fears grow over debt ceiling standoff

Nasdaq leads US stocks lower as yields surge and investors’ fears grow over debt ceiling standoff

US stocks tumbled on Tuesday, with the Nasdaq 100 leading the market lower amid a surge in interest rates due to inflation fears and an ongoing debt ceiling standoff in Congress. The 10-Year US Treasury yield hit a high of 1.56% on Tuesday, representing its highest level since June as Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified to Congress. Powell warned that a jump in inflation could last longer than expected as pressures impacting inflation last longer than expected. Meanwhile, that if the US debt ceiling isn't raised before the Treasury runs out of money, which is estimated to be around October 18, interest rates could continue to spike higher as investors around the world lose faith in America's ability to pay its obligations. "It would be a self-inflicted wound of enormous proportions" if the US doesn't raise the debt ceiling in time, causing a "financial crisis," Yellen told Congress. Shares of mega-cap tech stocks , , , , and fell more than 2% in Tuesday trades. for the first time in three years as a shortage in natural gas spurs demand for the commodity. Goldman Sachs from 8.7%, warning that the economy's energy crunch represents another