The S&P 500 extended its losing streak to three sessions on Tuesday as rising global bond yields, persistent inflation concerns and elevated oil prices weighed on investor sentiment. Weakness in semiconductor and technology stocks added further pressure to the broader market.
The S&P 500 declined 0.69% to close at 7,691.76, while the Nasdaq Composite fell 1.33% to 26,289.71. The Dow Jones Industrial Average slipped 116.38 points, or 0.22%, ending the session at 53,343.40.
Technology stocks were among the biggest drags on the market. Western Digital dropped 7%, while Sandisk lost 9%. Marvell Technology and Seagate Technology also saw sharp declines, falling nearly 8% and more than 9%, respectively.
Meanwhile, government bond yields continued to climb across major economies. The U.S. 30-year Treasury yield reached a fresh 19-year high, while Japan's 10-year government bond yield rose to its highest level in three decades. Germany's 30-year bond yield hit its highest level since 2011, and France's 30-year yield reached levels not seen since 2008.
Investors remain concerned that elevated oil prices could keep inflation pressures alive, potentially forcing interest rates to remain higher for longer. U.S. crude futures climbed another 0.5% on Tuesday to settle around $84.94 per barrel.
Geopolitical tensions also remained a key focus as hopes for a resolution to the Middle East conflict weakened. President Donald Trump said the U.S. was not currently engaged in talks with Iran and that no negotiations were scheduled, while maintaining that the naval blockade remained in effect.
Frequently Asked Questions
Why did the S&P 500 fall for a third consecutive session?
The market came under pressure from rising global bond yields, high oil prices, persistent inflation concerns and a sell-off in semiconductor stocks.
How do rising bond yields affect the stock market?
Higher bond yields increase borrowing costs and can make bonds more attractive compared with stocks, particularly putting pressure on high-growth and technology companies.
Why are elevated oil prices a concern for investors?
Higher oil prices can increase inflation, raising concerns that central banks may keep interest rates higher for longer.
What could investors watch next for market direction?
Key factors include movements in oil prices and bond yields, developments in the Middle East conflict, inflation data, and upcoming central bank signals.
