US Stocks Plunge as Oil Prices Soar and Treasury Yields Hit 19-Year High

The US stock market has taken a hit on Tuesday as rising oil prices and elevated Treasury yields weighed on investor sentiment.

Rising energy costs have pushed inflation concerns higher, with the 10-year Treasury yield reaching its highest level since 2007 at over 5%.

This increase in yields is expected to lead to a Federal Reserve rate hike by 25 basis points this week, and possibly another hike before the end of the year.

The market is currently pricing in a 90% probability of a rate hike, which has led to high yields on risk-free Treasuries, further dampening the appeal of stocks and other risk assets.