Dow Jones Slumps as Oil Prices Surge and Fed Rate Hike Fears Return

The Dow Jones Industrial Average fell 0.41% on Tuesday as investors assessed renewed inflation risks, higher borrowing costs, and geopolitical tensions.

The market weakness came as oil prices rose, pushing U.S. Treasury yields higher. Rising bond yields can make bonds relatively more attractive than equities and increase pressure on high-valuation stocks.

Technology and semiconductor stocks were among the weaker areas of the market, with Nvidia, Intel, AMD, and Broadcom trading lower. Consumer discretionary stocks also weakened.

Energy companies benefited from higher crude prices, however, with major energy names such as Exxon Mobil and Chevron receiving support.