US Stocks Slide as Oil Prices, Bond Yields Rise and Fed Rate Hike Looms

The US stock market is experiencing losses as oil prices and bond yields rise. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average was down 406 points, or 0.8%, as of 12:52 p.m. Eastern time. The Nasdaq composite was 0.7% lower.

The yield on the 10-year Treasury climbed to 5.00% from 4.97% late Monday and briefly touched 5.04%. This is its highest level in years, with the last breach of 5% occurring in 2023. Higher yields mean that everyone from the US government to households to businesses must pay more interest to borrow money, slowing the economy.

According to Darrell Cronk, president of Wells Fargo Investment Institute, 'The result is a market that must work harder to generate earnings growth just as investors become less willing to pay premium valuations for that growth.'

Oil prices rose further Tuesday, with Brent crude climbing 3% to $108.87. This remains above its $72 level from early July and before the war with Iran began in February.