US Stocks Fall as Treasury Yields Hit Near Two-Year High and Oil Prices Rise
US stock indices fell on Tuesday as Treasury yields hit an almost two-year high and oil prices rose due to increased tensions in the Middle East.
Fed Chair Kevin Warsh's hawkish tone at Jackson Hole last week pushed rate-hike expectations higher, with the market now pricing in a 65% chance of a hike in September.
The bond market is exerting pressure on equities as Treasury yields rise to their highest level since January 2025, making it more expensive for investors to hold stocks.
Higher oil prices are also weighing on risk appetite, with crude now above $92 per barrel after two Saudi tankers were hit in the Strait of Hormuz.
The Nasdaq 100 has fallen back below its 50-day moving average and is testing support at 29,000. A break below this level could expose lower levels around 28,260.