Stocks Slump as Oil Prices and Bond Yields Rise

The US stock market is experiencing a decline as oil prices and bond yields rise. The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped by 406 points, or 0.8%. The Nasdaq composite decreased by 0.7%.

The increase in the yield on the 10-year Treasury to 5.00% from 4.97% is putting pressure on investors. This has not happened since 2023. As yields rise, it becomes more expensive for the US government and households to borrow money, slowing down the economy.

Nvidia rose by 0.5%, while Advanced Micro Devices climbed 2.1%. These artificial-intelligence stocks held steady despite their recent decline. This is in contrast to other companies that rely on customers having spare cash to spend on their products, which fell sharply.