Concerns about rising interest rates spurred a selloff in technology stocks, causing the S&P 500 to fall from an all-time high. Treasuries sank, and the yen plunged to its lowest level since 2017.

The S&P 500 was little changed on Tuesday as data revealed conflicting indicators of US inflation ahead of the Federal Reserve's three planned rate hikes this year. Manufacturers' prices paid in December were significantly lower than predicted, adding to signals that inflationary pressures may have peaked in some places. However, data showing a record job leave rate in the United States has contributed to fears over pay inflation.

The tech-heavy Nasdaq 100 dropped 1.3% with Tesla Inc. down 4.2%. Cathie Wood's flagship Ark innovation ETF fell 4.4%, while a fund that tracks newly listed firms fell 4.0%.

The losses came as the sell-off in US bonds resumed on Tuesday, with the 10-year treasury yield rising two basis points to 1.65% after rising 12 basis points on Monday.

Markets expect an increase in volatility as they manage the omicron variant, supply-chain disruptions, and more central banks withdrawing pandemic stimulus. On Monday, more over one million people in the United States were diagnosed with COVID-19, setting a new global daily record.

The Fed's tightening is expected to boost rates and reset equity valuations. Meanwhile, this week's December payroll data from the United States and minutes from the Federal Reserve's meeting last month may shed more light on the pace of such a move.