US stocks falls as markets assess downbeat China data

• US stocks fell in early morning trading as investors took in downbeat China data.
• The nation reported below-expected industrial production, retail sales, and a drop in exports.

US stocks fell Tuesday as investors took in more disappointing economic data from China and watched key US bond yields rise.

China's economic recovery missed analysts expectations over the month of July, according to newly released government data. Industrial production grew 3.7%, under the expected 4.4% year-over-year increase. Meanwhile, retail sales rose just 2.5%, below expected 4.5%. National exports dropped 9.2% to 2 trillion yuan, or just $278 billion.

Major indexes slid lower, while Hong Kong-listed stocks fell 1% through Tuesday's session.

US retail sales meanwhile, exceeded expectations, rising 0.7% in July, higher than 0.4% expected by economists.

US bond yields rose as investors raised their expectations of long-term interest rates. Yields on the 10-year Treasury note rose above 4.2%. The 10-year note has been steadily rising through August, trending solidly above 4% after sticking below that threshold for most of this summer.

Wall Street banks also suffered in early morning trading after Fitch warned it could downgrade a handful of US lenders. Bank of America, Citigroup, JPMorgan, and Wells Fargo shares were down in early Tuesday trades.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 4,470.28, down 0.42%

• Dow Jones Industrial Average: 35,128.18, down 0.51% (-179.45 points)

• Nasdaq Composite: 13,767.26, down 0.17%

Here's what else is going on:

• The Fed is closing in on its dream no-recession scenario, Goldman Sachs says.
• Russia is scrambling to prop up its ruble, leading its central bank to hike interest rates to 12% at an emergency meeting.
• The idea of a BRICS common currency is almost "embarrassing," according to the economist who named the group.
• Silly season is over for markets, and GameStop stock is the next to crash, according to "Bond King" Bill Gross.
• A secretive asset manager had $36 billion invested in just 5 tech stocks at the end of June, including shares of Tesla and Nvidia.

In commodities, bonds, and crypto:

• Oil prices dipped, with West Texas Intermediate down 1.3% to $81.44 a barrel. Brent crude, the international benchmark, fell 1% to $85.38 a barrel.
• Gold dipped 0.6% to $1,933.10 per ounce.
• The 10-year Treasury yield ticked up to 4.209%.
• Bitcoin traded mostly flat at $29.357.