Wall Street Stocks Fall as Oil Prices Rise Amid Inflation Fears
Wall Street stocks fell on Tuesday as oil prices continued to rise following another round of U.S. military strikes on Iran, stoking worries about stubbornly high inflation.
The S&P 500 index dropped by 0.7%, while the Dow Jones Industrial Average plummeted 456 points or 0.9% as of 1:26 p.m. Eastern time. The Nasdaq composite fell by 1%.
Technology stocks were among the heaviest weights on the market, with Microsoft losing 1.3% and Advanced Micro Devices declining 3%. Their large market values give them significant influence over the broader market's direction, and their growth has been heavily reliant on borrowing, which becomes more expensive as interest rates rise.
The ongoing sell-off in U.S. government bonds is also putting pressure on stocks. The yield on the 10-year Treasury rose to 4.79% from 4.75% late Monday, impacting mortgage rates and signaling that investors are demanding a higher return due to growing government debt. The bond sell-off is global, with other nations facing similar economic pressures.