Stocks get whacked after the 10-year hits 3%

Reuters/Brendan McDermid

A trader reacts near the end of the day on the floor of the New York Stock Exchange in New York

Stocks nosedived Tuesday, with the Dow Jones industrial average sinking 600 points at session lows. The selling came after the 10-year Treasury yield hit 3%, spooking markets. The dollar edged lower after a week of gains.

Here's the scoreboard:

Dow Jones Industrial Average: 24,023.93 −424.76 (-1.74%)

S&P 500: 2,623.41 −46.88 (-1.76%)

AUD/USD: 0.7609 +0.0002 (+0.03%)

ASX 200 SPI futures: 5,869.0 -5 (-0.09%)

1. The 10-year Treasury yield climbed above the key 3% level for the first time since 2014. Rising US government bond yields can crowd out consumer and corporate spending.
2. Earnings season rolls on. Shares of Caterpillar sank as much as 6% after calling its first-quarter results a "high watermark" for the year. Google-parent Alphabet shed more than 5% after reporting an increase in capital spending.
3. Other FAANG stocks were also hit hard. Shares of Facebook, Netflix and Amazon shed more than 4% each.
4. Oil topped $75 a barrel before plunging more than 2.5%. Traders shook off mounting supply concerns after President Donald Trump, alongside French President Emmanuel Macron, told reporters the US may preserve the Iran nuclear deal.

Here is Wednesday's economic calendar:

• Australian banks are closed for Anzac Day.
• Australia reports quarterly import prices.
• Bank of Canada Governor Stephen Poloz speaks.
• US weekly crude inventories are due out.
• Facebook, Twitter, AT&T and Boeing report quarterly earnings.