Stocks Fall Amid Easing Oil Prices, Treasury Yields

Stocks fell on Tuesday as technology shares retreated from early gains and Treasury yields continued to pressure equities. The S&P 500 was down following a lower close on Monday, when rising crude oil prices and surging Treasury yields renewed concerns about inflation and borrowing costs.

The U.S. Treasury yields eased on Tuesday after reaching fresh highs the previous day amid persistent concerns over inflationary pressures, according to CNBC. Oil prices were also retreating, which helped ease some of the pressure on equities.

Kyle Rodda, senior financial market analyst with Capital.com, said geopolitical developments remain very headline-driven and revolve around the prospect of a peace deal between the U.S. and Iran. The Iranians seem to be losing leverage as they lose control of the Strait of Hormuz and as isolation tactics by the U.S. put a squeeze on the Iranian economy.

Some energy analysts suggest oil flows out of the Persian Gulf have reverted to more than 90% of their pre-war levels, potentially explaining Iran's stronger motivation to make a deal and the Trump administration's stubbornness and reluctance to compromise.