US Stocks Plunge Amid Oil Price Surge and Trade Tensions

US stocks declined on Tuesday as rising oil prices and escalating US-Canada trade tensions weighed on Wall Street. The Dow Jones Industrial Average fell 511 points, or 0.7%, while the S&P 500 dropped 0.2%.

The surge in crude prices has raised concerns over the inflation outlook and the Federal Reserve's interest-rate path, particularly after a stronger-than-expected August jobs report.

Treasury yields have also moved higher amid concerns that elevated energy prices could fuel inflation, with the benchmark 10-year Treasury yield rising to its highest level since November 2023 and the two-year yield reaching its highest level since January 2025.