S&P 500, Nasdaq Fall as Iran Strikes Send Brent Toward $95
U.S. stocks moved lower Tuesday as renewed fighting between the United States and Iran sent oil prices sharply higher, pushed Treasury yields toward multiyear highs and revived concerns that energy inflation could keep interest rates elevated. The S&P 500 fell roughly 0.7%, while the Dow Jones Industrial Average lost about 0.9% and the technology-heavy Nasdaq Composite dropped around 1% during Tuesdays session. The selloff followed another escalation in the Middle East, with U.S. and Iranian forces exchanging strikes and investors again focusing on the risk of disruption around the Strait of Hormuz. Oil provided the clearest market reaction. Brent crude surged toward $95 per barrel, with the supplied FinancialJuice market update putting the settlement at $94.65, up $4.16, or 4.6%. That rise is increasingly important for equities because higher energy prices can feed directly into inflation expectations just as investors are debating whether the Federal Reserve may have to keep policy tighter for longer. Tech Stocks Take the Pressure as Yields Rise The oil shock quickly spilled into the bond market. The benchmark 10-year Treasury yield climbed to roughly 4.79%, near its highest level in about 19 months, as traders reassessed the inflation and interest-rate outlook. Higher yields are especially difficult for richly valued growth and technology companies
