US stocks fall as Treasury yields hit multi-year highs

U.S. stocks closed lower Tuesday as Treasury yields hit multi-year highs, with the Dow Jones Industrial Average falling 136 points, or 0.26%, to 51,345.41, while the S&P 500 and Nasdaq Composite also declined. The 30-year Treasury yield reached 5.621%, its highest since June 2002, and the 10-year yield rose to 5.293%, its highest since June 2007, pressuring equities by raising borrowing costs. Investors were assessing the rate outlook ahead of key inflation and labor market data due later this week. Market expectations for a Federal Reserve rate hike at the October meeting fell to 51.5% after a Fed official suggested policymakers could take time to assess data. September saw the S&P 500 and Dow decline 0.3% and 3.7% respectively, while the Nasdaq remained up over 1%.