US Stocks sliding down drastically due to rising rates

A street scene in Tokyo earlier this year

Investors have also been selling Treasurys this month in fear of rising inflation, pushing the yield on the 10-year U.S. Treasury note above 3 percent for the first time in four years on Tuesday morning. S&P 500 futures have risen 0.3%, while Dow Jones Industrial Average futures have advanced 51 points, or 0.2%.

In the cash market, the benchmark S&P 500 Index settled at 2639.40, up 4.84 or +0.18%. The Nasdaq Composite Index ended virtually flat at 7,004, down less than 0.1%.

After a strong start, US stocks abruptly sold off Tuesday after machinery maker Caterpillar said it doesn't expect to top its first-quarter profit for the rest of the year.

BONDS: Investors may have also been anxious about rising interest rates, as they tend to slow down economic growth by making it more expensive for people and companies to borrow money. Shares sold off after the company warned revenue growth would slow in the second half of the year.

Markets opened higher, but fell significantly after Caterpillar released its profit margins for the first quarter.

Google Parent company Alphabet's stock fell 5 percent despite reporting a $9.4 billion first-quarter increase in net profit on Monday. The yield on the 10-year Treasury note rose to 2.99 percent from 2.98 percent. Oil prices have also jumped and investors are anxious that new tariffs will also drive up costs and affect company earnings in the months to come.

Technology stocks also weighed on the major indexes. This is partly due to the company's president Brad Halverson's statement, according to which the company's forecasts are that the first quarter will be the culmination of the year.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said it hasn't happened yet.

Comcast rose 2.7 percent after the largest US cable company confirmed its $31 billion bid for Sky on the heels of its better-than-expected earnings report. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February.

The S&P 500 is down 39.05 points, or 1.5 percent.

However, Twitter fell 2.4percent after the social media company said it expects a slowdown in revenue growth and increasing costs, putting a damper on its otherwise upbeat earnings report.

Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12.

Shares of Boeing rose 4.2percent after the company posted better-than-expected profits amid strong commercial airliner sales, leading it to raise its forecasts after a record 2017.

Another market favorite, Amazon, shed 3.6 percent to $1,462.70.

Benchmarks in Hong Kong and South Korea fell as much as 1% by midday, while a number of other markets logged declines of at least 0.5%.

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