Dow plummets 425 points as interest rates surge

This story will be updated as new information becomes available. 3M CO. dropped as it guided to lower results.

INDUSTRIAL WEAKNESS: 3M, which makes Post-it notes and industrial coatings and ceramics, shed 8.3 percent to $197.92 after it cut its annual forecast. Facebook's first-quarter revenue is expected to come in at $11.4 billion - a 43 percent spike from the year-ago quarter.

The Dow Jones industrial average swung more than 750 points in the trading day. The tech-focused Nasdaq Composite Index was down 1.7%, marking its worst daily drop since April 6.

Investors tend to move toward bonds as a safer bet than stocks when the 10-year yield strikes 3 percent or more.

Stocks are falling sharply on Wall Street as big technology and industrial companies take heavy losses. The Dow Jones industrial average plunged as much as 619 points as investors feared that rising oil prices and other costs will slow down growth in company profits.

After a strong start, US stocks abruptly sold off Tuesday after machinery maker Caterpillar said it doesn't expect to top its first-quarter profit for the rest of the year. Elsewhere, aerospace company Boeing lost 2.9 percent to $329.06. Alphabet, Google's parent company, is one of the biggest losers after it reported greater revenue but also an increase in spending. Right now, the difference between them is about half of a percentage point.

USA stocks slid Tuesday amid disappointing first-quarter earnings reports from industrial giants like Caterpillar and 3M, and from tech companies like Alphabet, the parent company of Google.

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Travelers, mining company Freeport-McMoRan and plumbing supplies maker Masco all fell Tuesday after reporting results that were weaker than analysts were expecting.

The rate on the benchmark Treasury note is a key metric in determining many consumer and business interest rates. Verizon, Harley-Davidson and Fifth Third Bancorp all rose.

The S&P 500 is down 3.32 points, or 0.1 percent.

The Dow's industrials were hit the hardest, led downward by 3M and Caterpillar, which dropped more than 6.5 percent.

OVERSEAS: Germany's DAX lost 0.2 percent while the French CAC 40 added 0.1 percent.

Since the global financial crisis in 2008-09, a combination of low inflation expectations and a bond-buying program by the Federal Reserve have helped keep bond yields low, but they have climbed this year as inflation expectations have picked up.

On the economic front, US consumer confidence rebounded in April, according to the Conference Board, as short-term optimism improved and the share of consumers expecting their incomes to decline in the coming months hit its lowest level since December 2000.

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