US Stocks Slide as Treasury Yields Reach 24-Year High Amid Ongoing Iran Conflict
US stocks drifted lower on Tuesday as long-term Treasury yields ticked higher, putting pressure on the market. The S&P 500 fell 0.2%, while the Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite dropped 0.1%. Rising bond yields have been a major concern for investors, particularly in light of the ongoing US-Iran conflict, which has led to sharp fluctuations in oil prices.
The yield on the 10-year Treasury rose to 5.25%, touching its highest level since 2002. This increase is pressuring the market, as higher yields can slow economic growth by making borrowing more expensive for individuals and businesses. Energy stocks suffered broad losses, with Exxon Mobil falling 1%.
Despite some technology companies posting gains, such as Nvidia and Broadcom, the overall market remains under pressure from rising oil prices. Brent crude oil fell 1.7% to $96.16 a barrel, but remains well above its pre-war price of around $72. The ongoing conflict and resulting uncertainty in the IPO market have also contributed to the market's woes.
On the economic front, US employers posted fewer job openings in August, with 7.08 million openings marked down from July. This decrease, coupled with a decline in consumer confidence, is prompting concerns about inflation and its impact on the economy.