Oil Price Slide Eases Inflation Worries, Supports Stocks

Oil prices dropped for a second day on Tuesday, easing concerns in the bond market and supporting stock prices. The S&P 500 rose 0.3% to get closer to its all-time high set earlier this month.

The Brent crude price fell 3.6% to $87.27, despite tensions between the US and Iran increasing after the Trump administration announced new sanctions.

The drop in oil prices helped calm worries about high inflation, which had driven up Treasury yields through the summer.

The yield on the 10-year Treasury fell to 4.63% from 4.70% late Monday and from 4.74% at the end of last week.

Nvidia led the way among winners in artificial-intelligence technology, rising 2.2%, while Dick's Sporting Goods plummeted 30.7% after weaker-than-expected quarterly results.