US stock markets extended their losing streak for the third consecutive session, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 0.6%. According to reports from Business Standard, the Nasdaq composite sank 0.8%, following mixed global market performance. International markets showed varied results, with South Korea's Kospi declining 3.5% in early trading and Japan's Nikkei 225 losing 0.6% to 60,433.79. The latest developments show U.S. stock futures falling amid continued pressure from high oil prices and rising bond yields.
Treasury yields continued their upward trajectory, with the 10-year Treasury yield rising to 4.68%, up about 6 basis points from previous levels, as reported by Business Standard. The 30-year yield climbed 5 basis points to 5.2%, hitting its highest level since July 2007. This represents a significant increase from levels below 4% before the Iran war began. The yield rise is part of a worldwide climb that is making stock prices appear more expensive and threatening to slow economic growth. Higher yields can drive up rates for mortgages and loans to companies building AI data centers, which has been a major source of economic growth.
Technology stocks are experiencing significant pressure following substantial gains driven by artificial intelligence excitement, according to Business Standard reports. Nvidia fell 0.8% Tuesday and was among the heaviest weights on the S&P 500 due to its immense size. The stumble comes as critics argue these technology runs made stocks too expensive. Akamai Technologies dropped 6.3% after announcing plans to raise $2.6 billion through a convertible note offering. The latest sell-off in chip stocks is adding to pressure on equities, with U.S. stock futures falling amid these technology sector concerns. The Magnificent Seven stocks - Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, and Nvidia - were under pressure, with Amazon and Tesla seeing the biggest declines.
Mixed corporate earnings results contributed to market volatility, as reported by Business Standard. Home Depot rose 0.9% after flipping an early loss following earnings that edged past analyst expectations for profit and revenue. However, an important retail performance metric for stores more than one year old came in below some analyst expectations. CEO Ted Decker noted similar customer demand compared to last year despite greater consumer uncertainty and housing affordability pressure.
Oil prices showed volatility amid ongoing geopolitical uncertainty, with Brent crude hovering around $110 per barrel and WTI crude trading at $103 per barrel, as reported by Business Standard. Despite this decline, oil prices remain well above the $70 level from before the Iran war began. The price movements are contributing to broader market uncertainty as investors weigh the duration of Iran war-related supply disruptions affecting the Strait of Hormuz. President Trump announced he called off a planned military strike on Iran following appeals by Persian Gulf allies, stating that leaders of Saudi Arabia, Qatar and the UAE asked to hold off on the planned military attack. This development has helped ease some geopolitical tensions that had been driving oil prices higher.
