Oil Prices, Bond Yields Weigh Down Wall Street Stocks

Wall Street stocks took a hit on Tuesday as oil prices and bond yields continued to rise. The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped 328 points, or 0.6%. The Nasdaq composite sank 0.8%.

The yield on the 10-year Treasury climbed to 5.00% from 4.97% late Monday and briefly touched 5.04% overnight, its highest level in years. This increase in yields makes borrowing more expensive for individuals and businesses, slowing down economic growth.

Darrell Cronk, president of Wells Fargo Investment Institute, noted that the market must work harder to generate earnings growth as investors become less willing to pay premium valuations due to higher bond yields.

The war with Iran sent oil prices soaring, with Brent crude rising 2.9% to settle at $108.75. This has raised concerns about high inflation lasting for years, adding to existing worries about the U.S. government's massive debt level and other issues.