Stocks fall as oil, bond yields climb
SPY•Wall Street indexes fall as oil and yields rise
Wall Street's three major indexes went into reverse on Tuesday as oil prices rallied and 10-year Treasury yields eyed their fifth straight day of gains, touching their highest point since January 2025.
U.S. crude oil prices rallied about 3% as a resumption in fighting between the United States and Iran in the Middle East renewed fears of supply disruptions from the oil-producing region.
On the data front, U.S. manufacturing activity eased in August after strong growth in the prior month, with new orders slowing and input prices remaining high amid persistent supply-chain strains.
Meanwhile, Federal Reserve Governor Michael Barr said on Tuesday that if inflation does not cool quickly, it will be time for the U.S. central bank to increase interest rates.
Among the S&P 500's 11 major industry sectors, six were in the red with consumer discretionary .SPLRCD leading losses with a 1.7% drop while technology .SPLRCT and materials .SPLRCM were down about 1% each. Energy .SPNY, supported by rising oil prices, was the strongest gainer, up about 1%.
The Russell 2000 small-cap index .RUT fell 0.7% and growth was underperforming value with the S&P 500 growth index .IGX down 0.9% while value .IVX was down 0.1%.
Here is your morning snapshot:
(Sinéad Carew)
