Wall Street Stocks Slide as Treasury Yields Reach 24-Year High
Stocks on Wall Street closed lower on Tuesday as rising Treasury yields put pressure on the market. The S&P 500 slipped 0.2%, the Dow Jones Industrial Average dropped 0.3%, and the Nasdaq composite fell 0.1%. The decline came after a quiet morning, with major indexes shifting lower due to the impact of increasing bond yields on technology stocks.
Nvidia's stock gave up its early gain, closing 0.7% lower, while Broadcom rose 1.6%. Energy stocks were among the broadest losers, with Exxon Mobil falling 0.7%. Rising oil prices have been fueling a jump in Treasury yields, which threatens 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, touching its highest level since 2002. Shares of CarMax rose 4.7% after the used car dealership chain reported strong second-quarter revenue and profits that beat Wall Street expectations.