Treasury Yields Weigh on Wall Street as Stocks Close Modestly Lower

On Wall Street, stocks closed modestly lower on Tuesday as rising long-term 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%. Major indexes shifted lower after a quiet morning, with Nvidia giving up an early gain to close 0.7% lower and Broadcom rising 1.6%.

The price of Brent crude oil in the most actively traded part of the oil market fell 1.7%, settling at $96.16 a barrel. Energy stocks had broad losses, with Exxon Mobil falling 0.7%. Rising oil prices have fueled a jump in Treasury yields, threatening to slow economic growth by making borrowing more expensive for individuals and businesses.

The yield on the 10-year Treasury rose to 5.25% from 5.24% late Monday, reaching its highest level since 2002. Higher yields can hurt stock prices, particularly those of technology companies seen as expensive.