US stocks fell on Tuesday as oil prices and government bond yields remained high amid renewed inflation concerns, putting pressure on tech stocks.
The tech-heavy Nasdaq Composite (^IXIC) fell 1%, leading the major indexes lower. The Dow Jones Industrial Average (^DJI) traded roughly flat, while the S&P 500 (^GSPC) pulled back by 0.4%, extending losses after a downbeat start to the trading week.
Oil prices climbed to their highest level in over two weeks after President Trump said he intends to inflict more economic pain on Iran and threatened to “bomb” Oman if it interferes with the US’s plans for the Strait of Hormuz.
Brent crude (BZ=F) futures, the international benchmark, traded near $91 per barrel, and US benchmark West Texas Intermediate crude futures (CL=F) rose to $84 per barrel as the US Strategic Petroleum Reserve plunged to its lowest level since 1982.
Rising oil, an AI borrowing spree, and concerns over government borrowing have also lifted bond yields globally in recent days. In the US, the 10-year Treasury yield (^TNX) eased in morning trading but remained elevated at 4.70%, and the 30-year yield (^TYX) edged down to 5.30% after hitting a 19-year high.
Earnings, meanwhile, have supported equities so far this reporting season. While the second quarter reporting period has slowed, Home Depot’s (HD) stock dipped after reporting an improvement in sales for the second quarter as customers leaned toward smaller projects over the summer, and Klarna (KLAR) stock plunged on a trimmed outlook.