Wall Street Slips as Iran Tensions, Bond Yields Pressure Markets Ahead of Nvidia Earnings

Wall Street closed lower on Tuesday as investors reacted cautiously to stalled U.S.-Iran negotiations and another sharp rise in global bond yields. The S&P 500 fell 0.6%, while the NASDAQ Composite lost 0.8% ahead of highly anticipated earnings from Nvidia.

Technology shares remained under pressure as rising Treasury yields continued to weigh on high-growth sectors. Investors are increasingly worried that persistent inflation, fueled by elevated oil prices, could force central banks to keep interest rates higher for longer. The U.S. 10-year Treasury yield climbed to its highest level since early 2025, while the 30-year yield touched levels not seen since 2007.

Geopolitical tensions also stayed in focus after President Donald Trump revealed he was “an hour away” from launching fresh strikes on Iran before delaying military action following intervention from Gulf leaders. Iran later submitted a new peace proposal through Pakistani mediators, although reports suggested the offer differed little from proposals previously rejected by Washington.

Meanwhile, markets are closely watching Nvidia’s earnings report, seen as a major test for the ongoing AI-driven stock rally. Analysts believe strong results from the chipmaker could help restore momentum to technology shares after recent profit-taking and concerns over stretched valuations.

Outside tech, Home Depot rose after reporting stronger-than-expected earnings, signaling that U.S. consumers remain relatively resilient despite rising fuel costs and inflation concerns.