Wall Street Falls Further Amid Rising Treasury Yields and Oil Volatility/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks extended losses Tuesday as rising Treasury yields and persistent inflation fears pressured financial markets. Technology shares led the decline ahead of Nvidia’s highly anticipated earnings report. Higher oil prices tied to tensions around Iran and the Strait of Hormuz continue driving concerns about inflation and economic growth.

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Wall Street Market Selloff Quick Looks

• The S&P 500 fell 0.9% Tuesday morning
• The Nasdaq dropped 1.3% as tech stocks weakened
• Treasury yields climbed sharply amid inflation concerns
• Nvidia shares slipped ahead of earnings Wednesday
• Oil prices remain elevated because of Iran conflict fears
• Brent crude traded above $110 per barrel
• Gasoline prices climbed to $4.53 per gallon nationally
• South Korea’s Kospi index dropped 3.3%
• Akamai Technologies fell after announcing a debt offering
• Investors worry higher interest rates could slow economic growth

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Deep Look

Wall Street Pulls Back From Record Highs

U.S. stocks fell sharply Tuesday as rising Treasury yields and inflation fears continued rattling investors following Wall Street’s recent record-setting rally.

The S&P 500 dropped 0.9% during morning trading, putting the benchmark index on track for its third consecutive decline after recently reaching an all-time high.

The Dow Jones Industrial Average fell 233 points, or 0.5%, while the Nasdaq composite slid 1.3% as technology stocks led the broader market lower.

The latest losses reflected growing concerns that elevated inflation, rising energy prices, and climbing bond yields may eventually slow economic growth and pressure corporate profits.

Bond Markets Continue Driving Investor Anxiety

Much of the recent market pressure has centered around the bond market, where Treasury yields have climbed significantly in recent weeks.

The yield on the benchmark 10-year Treasury note rose to 4.67% Tuesday from 4.61% Monday and from below 4% before the Iran conflict escalated.

Higher Treasury yields make borrowing more expensive for businesses and consumers, which can weaken economic activity and reduce the attractiveness of stocks.

Investors are particularly concerned about how higher rates could impact industries heavily dependent on financing, including artificial intelligence infrastructure projects and housing.

Mortgage rates have already risen sharply alongside Treasury yields.

Higher borrowing costs are also threatening major investments in AI data centers, one of the fastest-growing segments of the U.S. economy.

Tech Stocks Lose Momentum Ahead of Nvidia Earnings

Technology shares once again became the market’s biggest source of weakness Tuesday.

Many AI-focused stocks have surged dramatically over the past year, driven by enthusiasm surrounding artificial intelligence development and strong corporate earnings.

However, some analysts increasingly warn that valuations have become stretched.

Nvidia, the AI chipmaker widely viewed as the market’s most influential technology stock, fell 1% ahead of its quarterly earnings report scheduled for Wednesday.

Investors are closely watching the company’s results because Nvidia has repeatedly exceeded Wall Street expectations while issuing aggressive growth forecasts tied to booming AI demand.

Market analysts believe Nvidia’s earnings could significantly influence whether the broader stock rally continues.

“Every flow has its ebb,” Barclays Capital strategists Rex Feng and Venu Krishna wrote in a report.

They said investors have recently poured unusually large amounts of money into U.S. stock funds, fueling “the fastest rebound in decades; now the pendulum could swing backwards.”

Iran Conflict Continues Influencing Global Markets

The ongoing conflict involving Iran remains one of the largest drivers of market uncertainty.

Oil prices have experienced sharp swings as investors assess how long disruptions in the Strait of Hormuz could continue affecting global energy shipments.

Although oil prices eased slightly Tuesday, Brent crude still traded around $110.48 per barrel — dramatically higher than the roughly $70 level seen before tensions escalated.

Higher energy prices continue fueling inflation concerns worldwide.

The national average gasoline price climbed overnight to approximately $4.53 per gallon, according to AAA, representing a roughly 43% increase compared with the same time last year.

Elevated fuel costs are putting additional pressure on consumers already facing affordability concerns tied to inflation and high interest rates.

Global Markets Mixed Amid Economic Uncertainty

Stock markets abroad delivered mixed performances Tuesday.

Asian technology stocks struggled heavily, contributing to a 3.3% decline in South Korea’s Kospi index.

European markets performed more steadily, with Germany’s DAX index gaining 0.4%.

London’s FTSE 100 remained mostly flat despite a sharp decline in shares of Standard Chartered.

The banking company announced plans to eliminate more than 7,800 jobs as it expands artificial intelligence and automation efforts.

The move highlighted another growing trend in corporate America and global business: companies increasingly citing AI adoption as a reason for workforce reductions and restructuring.

Corporate Earnings Continue Supporting Economy

Despite market volatility, many major U.S. companies continue reporting stronger-than-expected profits.

Consumer spending has remained surprisingly resilient even as gasoline prices rise and economic uncertainty increases.

Home Depot shares managed to recover from early losses Tuesday after the company reported quarterly revenue and profit results slightly ahead of analyst expectations.

However, the retailer also acknowledged ongoing pressure from housing affordability challenges and cautious consumer behavior.

CEO Ted Decker said demand trends largely matched conditions seen throughout the previous year “despite greater consumer uncertainty and housing affordability pressure.”

Investors Brace for More Volatility

Financial markets remain highly sensitive to inflation data, oil price swings, and central bank expectations.

Rising yields are increasing fears that the Federal Reserve and other global central banks may need to maintain elevated interest rates longer than investors previously anticipated.

At the same time, geopolitical risks tied to Iran and Middle East energy supplies continue adding uncertainty across markets.

With Nvidia earnings approaching and bond yields still climbing, investors are preparing for potentially more volatility in both stock and global financial markets over the coming weeks.

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