US Stock Market Declines as Bond Yields Reach New Highs

The U.S. stock market experienced a decline on Tuesday, extending its losing streak to three consecutive sessions. The Dow Jones Industrial Average fell by 0.22%, while the S&P 500 dropped 0.69%. The Nasdaq Composite was hit particularly hard, plummeting 1.33% at close.

The tech-heavy index saw significant losses, with Nvidia, Micron Technology, and Broadcom shares declining more than 2%, 7%, and 3% respectively. The iShares Semiconductor ETF (SOXX) fell nearly 5%, while the Vanguard Information Technology ETF (VGT) lost over 2%. Despite this, economist Peter Schiff noted that some investors may be rotating from equities to bonds as bond prices continue to fall and yields rise.

Global bond yields surged on Tuesday, with the U.S. 30-year Treasury yield reaching a fresh 19-year high at 5.274% and the 10-year Treasury yield at 4.692%. The Federal Reserve's July meeting minutes are expected to provide cues on the economy on Wednesday.