Oil Prices Fuel Inflation Anxiety, Stocks Plummet on Wall Street

The US stock market took a hit on Tuesday as oil prices continued to rise and fueled concerns about inflation. The S&P 500 index fell by 0.4%, while the Dow Jones Industrial Average dropped 164 points, or 0.3%. Technology stocks were among the biggest losers, with Nvidia down 1.2% and Advanced Micro Devices falling 2.9%.

The ongoing sell-off in US government bonds is also contributing to the market's woes. The yield on the 10-year Treasury rose to 4.77%, up from 4.75% late Monday, while the 2-year Treasury yield increased to 4.37%. Rising bond yields signal that investors are demanding higher returns due to growing risks.

The global economy is facing significant challenges, including rising government debt and conflicts affecting oil prices. The US debt has surpassed $40 trillion, with defense costs and interest on the deficit making up a substantial share of federal spending.