World equity indexes slid and U.S. Treasury yields fell on Tuesday as low trading volume, a lull in economic news and lack of a catalyst to lift stocks higher sparked a sell-off by investors worried further upside in markets is limited.
The tech-rich Nasdaq (.IXIC) fell 1.9%, its biggest single-day decline in almost six weeks, while the yield on 10-year Treasury notes fell to a low of 1.557%, a slide that normally would push technology shares higher on lower financing costs.
A surge in commodity prices bucked the downdraft in equity markets, helping spur talk of rising inflation, while the dollar rose after U.S. Treasury Secretary Janet Yellen said interest rates may need to rise to prevent overheating the U.S. economy. read more Yellen later downplayed inflation and rate hike concerns.
The Refinitiv/CoreCommodity CRB Index (.TRCCRB) traded near three-year highs as commodities rallied on investor bets that demand will grow as…