Wall Street Stocks Slide Amid Higher Oil Prices and Rising Bond Yields

Stocks on Wall Street took a hit Tuesday as higher oil prices and rising bond yields weighed heavily on investors. The S&P 500 index fell 0.7%, while the Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite slid 1%. Oil prices have been a significant concern, with Brent crude up 4.6% to settle at $94.65 per barrel.

The ongoing US-Iran conflict has limited oil shipments through the Strait of Hormuz, leading to higher costs for everything from gasoline to shipped goods and fueling stubbornly high inflation. Higher bond yields also contributed to the pressure, with the 10-year Treasury yield rising to 4.79% from 4.75%. This marks a significant increase from its low point earlier this year.

Tech stocks were particularly hard hit, with Nvidia down 1.5%, Amazon dropping 1.9%, and Advanced Micro Devices giving up 2.4%. Their large market values give them more influence over the broader market's direction, and their growth has been heavily reliant on borrowing, which becomes more expensive as interest rates rise.