Wall Street Slumps as U.S. Treasury Yields Surge

US equities closed lower on Tuesday as yields on U.S. government bonds surged, reigniting fears about inflation amid geopolitical tensions in the Middle East. Tech stocks bore the brunt of the selling, with the Nasdaq Composite leading declines for a third consecutive session. The Dow Jones Industrial Average fell 322.24 points, or 0.65%, to 49,363.88, while the S&P 500 declined 0.67% to 7,353.61 and the Nasdaq Composite dropped 0.84% to 25,870.71. Yields rose for a third day, raising concerns that inflation pressures may be slow to ease. Global oil prices remained above $110 per barrel as tensions between Iran and the United States persisted. Markets continued to monitor diplomatic developments after US President Donald Trump said he had briefly paused military action in response to Tehran’s peace proposal, though he cautioned that the U.S. could strike again if necessary. US Vice President JD Vance said talks with Iran suggested progress and that both sides did not want a resumption of conflict. Nevertheless, traders argued that solid signs of de‑escalation were lacking, implying that oil and yield trajectories would stay elevated and could weigh on equities. Market participants have started factoring in the possibility of higher interest rates if inflation remains elevated.