Wall Street drops 1% with all eyes on Fed policy decision on Wednesday

The benchmark US 10-year Treasury yield hit 3.58%, its highest level since April 2011; Ford sees additional $1 bn in inflationary costs, shares fall

Wall Street's main indexes fell 1% on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation.
 

All of the 11 major S&P sectors declined in early trading led by a 1.6% and 2.1% drop in real estate and materials sectors, respectively.
 

Shares of rate-sensitive growth companies such as Meta Platforms Inc, Tesla Inc, Microsoft Corp, Nvidia Corp, Alphabet Inc and Amazon.com Inc fell between 0.9% and 1.5% as Treasury yields climbed in anticipation of the rate hike.
 

The benchmark U.S. 10-year Treasury yield