By DAMIAN J. TROISE and ALEX VEIGA AP Business Writers
Stocks drifted lower on Wall Street as long-term Treasury yields ticked higher, pressuring the market. The S&P 500 fell 0.2% Tuesday. The Dow Jones Industrial Average slipped 0.3%, and the Nasdaq composite fell 0.1%. Stocks have been under pressure as oil prices have swung sharply amid the U.S. war with Iran, helping to push Treasury yields higher. The yield on the 10-year Treasury rose to 5.25% and touched its highest level in 24 years. The price of Brent crude oil fell 1.7% to $96.16 a barrel, but remains far above where it was this summer. Markets in Europe were mixed.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stocks are drifting lower on Wall Street Tuesday as long-term Treasury yields tick higher, weighing on the market.
The S&P 500 was down 0.1% in afternoon trading after wavering between modest gains and losses. The Dow Jones Industrial Average fell 119 points, or 0.2%, as of 3:05 p.m. Eastern time. The Nasdaq composite edged up 0.1%.
Major indexes shifted lower after a quiet morning as rising bond yields undercut much of the heavy lifting being done by several technology behemoths. Nvidia, the market’s most influential stock, gave up an early gain and was down 0.2%. Broadcom also gave up much of its gain and was up most recently by 2%.
Stocks remain under pressure as oil prices swing sharply as the U.S. war with Iran drags on, helping to push Treasury yields to their highest levels in 24 years.
The price of Brent crude oil in the most actively traded part of the oil market fell 1.7% to settle at $96.16 a barrel. It briefly climbed above $100 on Monday before prices eased a bit, but it is still well above the roughly $72 it cost before the U.S. and Israel attacked Iran in late February.
Mediators continued to work with the United States and Iran on reaching a deal to end the fighting and open the Strait of Hormuz. U.S. President Donald Trump over the weekend rejected an offer from Tehran to reopen the key waterway.
Energy stocks had some of the broadest losses. Exxon Mobil fell 1%.
Overall, rising oil prices have been fueling a jump in Treasury yields. Higher yields threaten to slow economic growth by making borrowing more expensive for individuals and businesses. They can also hurt prices for stocks, especially those seen as expensive, including many technology companies that have soared because of the frenzy around AI technology.
The yield on the 10-year Treasury rose to 5.26% from 5.24% late Monday, touching its highest level since 2002, according to Tradeweb, well before the financial crisis and Great Recession sent yields toward zero.
Shares of CarMax rose 6.3% after the used car dealership chain reported soaring second-quarter revenue and delivered profits that easily beat Wall Street expectations. The company also announced changes to its executive leadership.
Oura, the maker of wearable digital health accessories and jewelry, said Tuesday that it was postponing its initial public offering, despite strong demand, due to uncertainty in the IPO market.
Markets in Europe were mixed and markets in Asia closed mostly lower.
Wall Street will see several big economic updates this week that could help investors and the Federal Reserve get a better sense of where inflation is headed and how households and businesses are dealing with high prices.
The latest update on the jobs market Tuesday showed that U.S. employers posted fewer job openings in August. The Labor Department’s monthly report said they slid to 7.08 million openings, marking a drop from July and registering below what economists had forecast. It also showed that layoffs fell and fewer people are quitting their jobs.
The jobs market has been resilient even as stubbornly high inflation squeezes businesses and households. Wall Street will get a broader update on Friday, when the U.S. releases its monthly employment report for September.
Households have been facing higher prices on everything from gasoline to clothing as the U.S. war with Iran curtails oil shipments through the Strait of Hormuz. The latest update on consumer confidence from business group The Conference Board shows a slump in September. Consumer confidence dipped to its lowest level in 12 years.
“Americans feel jobs are more scarce and are pulling back on plans for homes, cars, and big-ticket purchases, emitting a warning sign for holiday spending even though layoffs data show employers aren’t yet cutting workers to match the gloom,” said Jeffrey Roach, chief economist for LPL Financial, in a research note.
Stubbornly high inflation has been sapping consumer confidence and pressuring the Fed, which recently raised its benchmark interest rate in an effort to cool prices. The latest update of the central bank’s preferred measure of inflation will be released on Wednesday. Economists expect the personal consumption expenditures index, or PCE, to show that the rate of inflation rose 3.7% August, matching July’s reading.
Inflation rates have remained stubbornly above 3% most of the year and that is well above the Fed’s target rate of 2%. Wall Street expects the central bank to raise its benchmark interest rate again at its next meeting in October.
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Associated Press business writers Chan Ho-him and Matt Ott contributed to this report.