Oil Prices Fall Again, Easing Worries in Bond Market

Oil prices fell for the second time in two days on Tuesday, which helped ease worries in the bond market and support stock prices. The S&P 500 rose by 0.3%, while the Dow Jones Industrial Average added 160 points, or 0.3%. The Nasdaq composite climbed 0.7%.

The price of Brent crude fell 3.6% to $87.27, despite tensions between the United States and Iran escalating after new sanctions were announced by the Trump administration. However, a delegation from Pakistan met with Iranian President Masoud Pezeshkian on Tuesday, and Pakistani Interior Minister Mohsin Naqvi described their meeting as 'very positive and productive.'

The drop in oil prices also helped to calm worries about high inflation, which had driven Treasury yields higher through the summer. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Monday.

Nvidia was one of the top performers on Wall Street, rising 2.2% after its AI-related stocks veered up and down through the summer. However, Dick's Sporting Goods reported weaker results for the latest quarter than analysts expected, leading to a 30.7% plunge in its stock price.