Tech stocks fell as Treasury yields climbed, with markets digesting prospects for growth and inflation from China's rollback of COVID isolation measures.

The tech-heavy Nasdaq 100 underperformed major benchmarks, with Tesla Inc. leading losses as a report of a plan to temporarily halt production at its China factory rekindled fears about demand risks. Apple Inc. touched the lowest since June 2021 amid a slump in big tech. Meanwhile, the blue-chip Dow Jones Industrial Average outperformed, with gains in stocks like Caterpillar Inc. and Boeing Co.

The S&P 500 traded off session lows, buoyed by gains in commodity-related stocks with oil in New York topping $80 a barrel. Southwest Airlines Co. led declines in airline stocks after canceling flights in a massive winter storm that battered the U.S.

The yield on 10-year Treasuries climbed nine basis points as China moved to end the quarantine for inbound visitors.

Investors are hoping for a year-end rally to help mitigate what has otherwise been a brutal run for risk assets. The S&P 500 is down almost 20%, while Asian and global stocks still remain down by a similar amount in the worst annual drop since 2008. The 10-year Treasury yield is near 3.80%, up from 1.5% at the start of the year as the Federal Reserve embarked on an aggressive battle against inflation. Bitcoin held below $17,000 after starting 2022 at more than $47,000.

"We may get a pivot later on next year from the Federal Reserve where they actually start cutting rates, but that's going to happen when the situation is going to become much more dire than it is now," Matt Maley, chief market strategist for Miller Tabak + Co., said on Bloomberg TV. "If we just have this slow grind lower, the Fed's going to keep interest rates at high levels even if they stop raising rates in any kind of way."

Elsewhere in markets, the outlook for demand from China as the economy reopens boosted the price of oil on Tuesday, along with freezing weather across the U.S., which prompted refinery closures.

Iron ore surged to its highest since early August. Gold edged higher, trading above $1,800 an ounce as risk assets gained.

The equities market in London remains closed Tuesday.

Stephen Kirkland reports for Bloomberg News.

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