Treasury Yields Rise, Stocks Slip as Oil Prices Soar
Stocks on Wall Street closed modestly lower on Tuesday as rising Treasury yields weighed heavily on the market. The S&P 500 slipped 0.2%, while the Dow Jones Industrial Average dropped 0.3% and the Nasdaq composite fell 0.1%. Several major indexes shifted lower after a quiet morning, with Nvidia giving up an early gain to close 0.7% lower.
The increase in Treasury yields is attributed to rising oil prices, which have climbed above $96 per barrel due to ongoing tensions between the US and Iran. Energy stocks were among the broadest losers, with Exxon Mobil falling 0.7%. Higher yields threaten to slow economic growth by making borrowing more expensive for individuals and businesses.
Despite some bright spots in the market, such as CarMax's 4.7% rise after reporting strong second-quarter revenue, the S&P 500 is on pace for a slight monthly loss after posting a 2.6% gain in August. The index is up 12.1% so far this year.