Oil Price Surge Sparks Inflation Anxiety on Wall Street

The US stock market experienced a weak start to September on Tuesday as rising oil prices fueled inflation anxiety.

The S&P 500 index fell 0.4%, while the Dow Jones Industrial Average dropped 190 points, or 0.4%. The Nasdaq composite also declined 0.5%.

The ongoing sell-off in US government bonds is a major concern for investors. The yield on the 10-year Treasury rose to 4.77% from 4.75% late Monday, and the yield on the 2-year Treasury increased to 4.37% from 4.34%.

Rising bond yields signal higher borrowing costs, which can weigh down investments and make it more difficult for businesses to expand. The US debt has surpassed $40 trillion, and growing government debt is contributing to this risk.