Stocks are mostly lower on Tuesday after a horrendous day for markets on Monday. All three major averages were down at least 2.8% yesterday, with the S&P 500 falling to its lowest level since March 2021. Investors are concerned as it is being reported the Fed could now hike by 75 basis points on Wednesday, followed by another 75-basis-point hike at the next FOMC meeting.

Looking at economic data today, the Producer Price Index rose 0.8% in May and prices were up 10.8% over the past year, near the record high. Core producer prices, which exclude food, energy, and trade, rose 0.5% for the month, just below expectations of 0.6%. Core prices were up 6.8% over the past year, matching the April gain.

The NFIB Small Business Index was little changed in May at a reading of 93.1. It is the fifth straight month below the 48-year average of 98.0. Owners expecting better business conditions fell to the lowest level on record. Inflation was cited as the biggest concern amongst small business owners.

U.S. Treasury yields are higher, with the 2-year Treasury yield up 8.7 basis points to 3.37%, the 5-year Treasury yield up 2.2 basis points to 3.50%, and the 10-year Treasury yield up 1.6 basis points to 3.39%. Advance rates are higher on terms through one year and lower on longer term advances.