Stocks slip on Wall Street under pressure from rising oil prices, bond sell-off

Wall Street stocks fell Tuesday as higher oil prices stoked worries that inflation could remain stubbornly high. The S&P 500 dropped 0.4%, while the Dow Jones Industrial Average fell 190 points, or 0.4%, by 12:05 p.m. Eastern time. The Nasdaq composite declined 0.5%.

Technology stocks were among the biggest drags. Microsoft fell 1.3% and Advanced Micro Devices lost 2.4%. Their large market values give them an outsized influence on the broader market. Their growth during the artificial-intelligence boom has also relied heavily on borrowing, which becomes more expensive as interest rates rise.

Investors continued selling U.S. government bonds. The yield on the 10-year Treasury rose to 4.77% from 4.75% late Monday, while the two-year yield increased to 4.37% from 4.34%. Bond yields rise when prices fall, and higher yields mean investors are demanding greater returns from Treasurys.

The bond market is also confronting concerns about government debt. U.S. debt surpassed $40 trillion two weeks ago, while defense spending and interest payments account for a large share of federal spending. The sell-off has spread globally as other governments face similar economic pressures.

Oil prices added to the pressure on inflation, bond yields and stocks. Brent crude, the international benchmark, rose 2.3% to $92.61. Energy costs have remained high and volatile as the conflict involving the United States and Iran has effectively closed the Strait of Hormuz, a route normally carrying 20% of the world’s oil. Higher oil prices have increased costs for gasoline and transported goods, squeezing households and businesses.