US Stock Market Dives Amid Ongoing Conflict and Rising Bond Yields

Wall Street indices declined on Tuesday as the ongoing US-Iran conflict and rising bond yields weighed on investor sentiment.

The S&P 500 index fell 0.7%, while the Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite slid 1%. The major indexes have lost ground for three consecutive days.

Technology stocks were among the heaviest weights, with Nvidia falling 1.5%, Amazon dropping 1.9%, and Advanced Micro Devices giving up 2.4%. Their significant market values tend to influence the broader market's direction.

The ongoing sell-off in US government bonds has been a major contributor to the pressure on Wall Street. The yield on the 10-year Treasury rose to 4.79% from 4.75% late Monday, and the 2-year Treasury yield climbed to 4.39% from 4.34%. Rising yields signal that investors are demanding higher returns due to increased risk.

The US debt has surpassed $40 trillion, and growing government debt is a significant concern for investors. Higher borrowing costs tend to weigh down investments and make it more difficult for businesses to expand.