Dow Plunges Below 50-Period Average as Inflation Fears Rise

U.S. stocks declined on Tuesday as investors returned from the Labor Day weekend facing elevated Treasury yields and renewed inflation concerns ahead of crucial economic data.

The Dow Jones Industrial Average dropped about 540 points, falling below its 50-period average, while the S&P 500 traded around 7,707, down about 0.2%, despite holding above key trend support.

The Nasdaq Composite remained above its 50-day EMA near 26,060 and showed resilience in the face of weakness in some sectors, including mega-cap names like Microsoft, Alphabet, and Apple.