US stocks trade mixed as bond yields climb on the Bank of Japan's surprise hawkish policy pivot

• US stocks were mostly lower on Tuesday as investors continue to struggle to spark a Santa Claus rally.
• The Bank of Japan made a surprise benchmark rate increase. The yen jumped on the move.

US stocks traded mixed Tuesday as the Bank of Japan took a surprise hawkish turn on its monetary policy.

Japanese policymakers announced they would allow benchmark bond yields to trade as high as 0.5%. The country's 10-year bond yields surged as a result, Japanese stocks sold off, and the yen climbed.

That move mirrors those of other central banks as they navigate an increasingly complex economic outlook. Last week, the European Central Bank raised rates and adjusted its outlook to accommodate for more increases to come. At the same time, recession fears in the US continue to swirl on the back of the Fed's most recent 50-basis-point move, and Jerome Powell's indication that rates still have higher to go.

The Fed's preferred inflation gauge—personal consumption expenditures for November—will be published Friday.

Meanwhile, investors will be watching after the bell Tuesday for earnings from Nike and FedEx.

Here's where US indexes stood as the market opened 9:30 a.m. on Tuesday:

• S&P 500: 3,808.01, down 0.25%

• Dow Jones Industrial Average: 32,766.15, up 0.03% (8.61 points)

• Nasdaq Composite: 10,486.13, down 0.57%

Here's what else is going on:

• The yen surged against the dollar following the BOJ's policy adjustment
• Disney stock has plunged 45% this year, putting it on track for its worst performance in nearly five decades
• Mark Cuban said last year's crypto boom was "99% noise," and Sam Bankman-Fried's arrest could pop the bubble
• The US housing market faces a "triple whammy" of threats, according to a top strategist
• "Big Short" investor Michael Burry said crypto reserve reviews like Binance's are "essentially meaningless"

In commodities, bonds, and crypto:

• Oil prices climbed, with West Texas Intermediate up 1.1% to $76.02 a barrel.
• Brent crude, the international benchmark, inched higher 0.7% to $80.34 a barrel.
• Gold edged higher 0.93% to $1,814.40 per ounce.
• The 10-year yield ticked higher 11 basis points to 3.694%.
• Bitcoin moved higher 1.26% to $16,794.