U.S. stock indexes plummeted Tuesday and bond yields hit two-year highs while Goldman Sachs reported disappointing fourth-quarter earnings.

The Dow Jones Industrial Average fell 543.34 points, or 1.5%, to 35,368.47. The S&P 500 dropped 85.74, or 1.8%, to 4,577.11. The NASDAQ Composite weakened 386.86, or 2.6%, reaching 14,506.90, its lowest level in three months.

The yield on the benchmark 10-year Treasury note jumped 9 basis points to 1.87%, its highest level in two years.

The markets were closed Monday in observance of the Martin Luther King Jr. holiday.

Earnings from Goldman Sachs Group Inc. (GS) fell below analyst expectations. Shares of Goldman Sachs fell $26.54, or 7%. Charles Schwab (SCHW) also missed earnings estimates and fell 3.5%.

"Investment banking results based on surging advisory were really evident at Goldman Sachs, but I think trading revenues are going to be a little lighter because the pandemic-induced volatility is beginning to abate," Aberdeen Standard Investments senior portfolio manager Jon Curran told Yahoo Finance Live. "That, in tandem with the expense outlook, is what the market may be reacting to today."