Dow sheds almost 390 points, posts worst day since March as stock-market rout resumes

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U.S. stocks closed sharply lower Tuesday, with the Dow booking its worst daily drop since the March banking crisis as the rout in equities resumed. The Dow...

U.S. stocks closed sharply lower Tuesday, with the Dow booking its worst daily drop since the March banking crisis as the rout in equities resumed. The Dow Jones Industrial Average DJIA, -1.14% shed about 388 points, or 1.1%, ending near 33,618, according to preliminary FactSet data. That cemented the Dow’s biggest daily percentage drop since March 22, according to Dow Jones Market Data.

The Dow last broke below the same support level on May 25. Losses were even sharper for the S&P 500 index, SPX, -1.47% which fell 1.5% and for the Nasdaq Composite Index, COMP, -1.57% which shed 1.6%. Stocks have been under pressure in September, with volatility climbing since last week when the Federal Reserve indicated its policy rate could stay above 5% through the end of next year, a surprise to investors counting on rate cuts. The 10-year Treasury yield TMUBMUSD10Y, 4.553% was at 4.

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