The Dow Jones dropped again today, closing down about 0.35%, falling by over 130 points. Several heavyweight stocks like 3M, Home Depot, and Procter & Gamble performed poorly during the session, dragging the index down.

The most direct reason is that US Treasury yields have been rising lately. When bond yields go up, money is less likely to flow into the stock market—after all, bonds have lower risk and decent returns, so who wants to take the risk of chasing high-valuation stocks? This especially hurts consumer and industrial stocks, which are particularly sensitive to interest rates. Funds are starting to move out of risk assets and into bonds and cash, and this shift is quite obvious.

On top of that, the market is uncertain about the Fed’s stance. Everyone is guessing whether the Fed will continue raising rates or keep them high. This uncertainty boosts risk aversion, making the dollar and Treasuries short-term safe havens. Some say that if Treasury yields keep rising in the next few days or if inflation data isn't ideal, the stock market may continue to adjust for a while, and the Dow is likely to fluctuate within this range in the short term.

For regular investors, now might be a good time to reassess your positions—should you reduce leverage? Should you adjust your allocation and focus more on value or defensive sectors? These are all worth considering.

Of course, there’s another viewpoint: some think this pullback is just a short-term correction. If the Fed softens its stance and signals a dovish approach, and rate expectations turn more accommodative, then liquidity in both the bond and stock markets could improve, blue-chip valuations might rebound quickly, and a Dow recovery wouldn’t be out of the question.

In short, the bond market and monetary policy outlook are both unclear right now, and this Dow drop serves as a reminder: the macro environment can change quickly, so it’s best to take a steady approach with your portfolio.