Rising crude prices and a 10-year Treasury yield near 5% weigh on equities as investors brace for Wednesday’s Federal Reserve decision.
U.S. stocks traded lower Tuesday as investors confronted rising oil prices, elevated Treasury yields and renewed uncertainty surrounding the artificial intelligence trade.
The Dow Jones Industrial Average ($DJI) fell roughly 0.9% in late-morning trading, while the S&P 500 ($SPX) declined about 0.5% and the Nasdaq Composite ($IXIC) dropped approximately 0.8%. Market breadth was also notably weak, with declining stocks significantly outnumbering advancers.
Pressure intensified as the benchmark 10-year Treasury yield approached 5%, reaching its highest level since 2007. Meanwhile, Brent crude climbed above $108 per barrel and WTI traded around $105 as continued Middle East tensions fueled concerns about inflation.
Technology stocks remained in focus following Monday’s AI-driven selloff. Nvidia ($NVDA) recovered modestly during morning trading, while Microsoft ($MSFT), Amazon ($AMZN) and Alphabet ($GOOGL) faced selling pressure.
Energy was the only S&P 500 sector trading higher, gaining roughly 1.9%, while consumer discretionary stocks led declines.
Investors are now turning their attention to Wednesday’s Federal Reserve decision, with markets pricing in a high probability of an interest-rate increase. The Fed’s guidance could determine whether Wall Street’s recent weakness accelerates or gives way to a rebound.
