The Dow on Tuesday fell 425 points (1.73%) and the Nasdaq was off 121 points (1.7%). But it could have been worse, as the Dow at one point was down more than 600.

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Data: Money.net; Chart: Axios Visuals

Three primary drivers for the tumble:

  • 10-year Treasury yields hit 3% for the first time since 2014, which could cause some investors to take money out of stocks and put it into bonds.
  • Big tech carnage driven by Wall Street analysts lowering Google profit estimates. The so-called FANG stocks (Facebook, Amazon, Netflix and Google) were each down and lost a combined $84 billion in market value.
  • Caterpillar CFO Bradley Halverson told analysts that Q1 would be "the high watermark for the year." Caterpillar easily beat quarterly earnings estimates, but still finished down more than 6%.

Go deeper

Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging — Ex-FDA chief: Pence campaigning after exposure puts others at risk.
  2. Health: 13 states set single-day case records last week — U.S. reports over 80,000 new cases for second consecutive day.
  3. Business: Where stimulus is needed most.
  4. Education: The dangerous instability of school re-openings.
  5. World: Restrictions grow across Europe.
  6. Media: Fox News president and several hosts advised to quarantine.
Dion Rabouin, author of Markets
4 hours ago - Economy & Business

Bond investors see brighter days

Illustration: Sarah Grillo/Axios

U.S. government bonds could breakout further after yields on the benchmark 10-year Treasury note ticked up to their highest since early June last week.

But, but, but: Strategists say this move is about an improving outlook for economic growth rather than just inflation.

Erica Pandey, author of @Work
6 hours ago - Economy & Business

The dangerous instability of school re-openings

Illustration: Eniola Odetunde/Axios

Schools across the country have flip-flopped between in-person and remote learning — and that instability is taking a toll on students' ability to learn and their mental health.

The big picture: While companies were able to set long timelines for their return, schools — under immense political and social strain — had to rush to figure out how to reopen. The cobbled-together approach has hurt students, parents and teachers alike.

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