U.S. stock indexes plummeted Tuesday and bond yields hit two-year highs while Goldman Sachs reported disappointing fourth-quarter earnings.
As of 1:37 p.m. ET, the Dow Jones Industrial Average was down 566.63 points, or 1.58%. The S&P 500 fell 84.77, or 1.82%, and the Nasdaq Composite dropped 339.42, or 2.28%, its lowest level in 3 months.
The yield on the benchmark 10-year Treasury note jumped 1.857%, its highest level in two years.
The markets were closed Monday in observance of the Martin Luther King holiday.
Earnings from Goldman Sachs (GS) fell below analyst expectations. Shares of Goldman Sachs fell $27.93, or -7.33%, by 1:44 p.m. ET. Charles Schwab (SCHW) also missed earnings estimates and fell over 5%.
"Investment banking results based on surging advisory were really evident at Goldman Sachs, but I think trading revenues are going to be a little lighter because the pandemic-induced volatility is beginning to abate," Aberdeen Standard Investments senior portfolio manager Jon Curran told Yahoo Finance Live.
"That, in tandem with the expense outlook, is what the market may be reacting to today."