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Dow, S&P 500, Nasdaq Fall as Oil Tops $95, Yields Climb

6 days ago

US stocks dropped Tuesday as Brent crude topped $95 on new US strikes in Iran and the 10-year Treasury yield hit 4.79%, its highest since January 2025.: "the motley fool"

US stocks fell on Tuesday after fresh US airstrikes on Iran pushed oil prices higher, while rising bond yields and uncertainty over the Federal Reserve's next move kept buyers cautious. The Dow Jones Industrial Average slid nearly 0.8% and the S&P 500 lost roughly 0.7%. The tech-heavy Nasdaq Composite dropped more than 1%.

The declines came just after stocks closed August with solid gains. Markets entered September carrying double-digit year-to-date returns and rising earnings expectations, but volatile oil prices and the prospect of renewed Fed rate hikes weighed on sentiment.

Crude oil prices accelerated in afternoon trading after US Central Command said it had launched new attacks on Iranian targets, marking a reescalation of the conflict in the Middle East. The strikes followed the targeting of two oil tankers as they tried to leave the Strait of Hormuz. Brent futures, the global benchmark, traded above $95 per barrel.

US government bonds also sold off. The 10-year Treasury yield rose to 4.79%, its highest intraday level since January 2025. The 30-year yield climbed to 5.27%, hovering near multi-decade highs.

Economic data offered a mixed picture. The Job Openings and Labor Turnover Survey showed openings ticked up slightly in July, a relatively steady read on hiring ahead of Friday's monthly jobs report. Separately, the Institute for Supply Management reported that US manufacturing activity expanded for the eighth straight month, though the pace of growth eased slightly.

With the second-quarter earnings season now winding down, investors are turning to upcoming results from Dell and Palo Alto Networks for a read on how large companies are spending on technology and cloud services.

stock market today, Dow Jones, S&P 500, Nasdaq, oil prices, Brent crude, Treasury yields, Strait of Hormuz

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