NEW YORK: Wall Street stocks fell early Tuesday (Aug 18), extending the prior session’s retreat as surging bond yields and higher oil prices weighed on investor sentiment.
The yield on the 30-year US Treasury bond has reached its highest level in nearly 20 years, with yields also increasing for bonds from Germany, Japan and other countries.
“Bond yields are really casting a pretty dark cloud over the equity markets and tech in particular,” said Jack Ablin of Cresset Capital.
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.1 per cent at 53,388.39.
The broad-based S&P 500 shed 0.5 per cent to 7,707.42, while the tech-rich Nasdaq Composite Index fell 1.1 percent to 26,354.54.
The jump in bond yields reflects expectations that inflation will persist, as well as concerns about fiscal deficits in the United States and other major economies.
Oil prices also ticked higher as hopes fade for an imminent reopening of the Strait of Hormuz while the United States and Iran bicker over conditions.
