Markets Slide for Third Straight Day as Bond Yields Surge and Tech Stocks Falter

S&P 500 drops 0.7%, Dow sheds 322 points as rising Treasury yields, Iran war uncertainty, and cooling AI enthusiasm pressure equities across Wall Street and global markets.

The S&P 500 fell 0.7% for its third straight loss since setting its latest all-time high. The Dow Jones Industrial Average dropped 322 points (0.6%) and the Nasdaq composite sank 0.8%.

The declines followed mixed moves for stock markets abroad, while oil prices eased in their latest yo-yo move. Falling technology stocks in Asia dragged South Korea?s Kospi down 3.3% but Germany?s DAX returned 0.4%.

Tech stocks are faltering following huge runs made because of excitement around artificial-intelligence technology, runs that critics said made them too expensive. The stumble comes as oil prices swing on uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers. That in turn has pushed yields higher in bond markets, which is dragging on economies and pressuring all kinds of other investments. Nvidia is yet to report its latest quarterly results. How it does could determine whether technology stocks and the larger U.S. stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of the heaviest weights on the S&P 500 because of its immense size.

Akamai Technologies dropped 6.3% for one of Wall Street?s sharper losses after the cybersecurity and cloud computing company said it wants to raise $2.6 billion through a convertible note offering. Home Depot rose 0.9% after flipping an early loss following its latest earnings report. Its profit and revenue edged past analysts? expectations, but an important measure for retailers that looks at performance for stores more than 1 year old came in below some analysts? expectations. CEO Ted Decker said Home Depot saw similar demand from its customers as it did throughout last year ?despite greater consumer uncertainty and housing affordability pressure.?

In stock markets abroad, London?s FTSE 100 edged up 0.1% despite a 2.2% drop for Standard Chartered. The bank said Tuesday it plans to reduce over 7,800 roles as it steps up artificial intelligence and automation uses. It?s the latest big company to cite AI as one of the reasons for cutting jobs.

In the bond market, Treasury yields climbed further. The yield on the 10-year Treasury rose to 4.66% from 4.61% late Monday and from less than 4% before the war with Iran began. That?s a notable increase, and it?s part of a worldwide climb that?s making stock prices look even more expensive and threatening to slow the economy. Higher yields can drive up rates for mortgages and loans going to companies to build AI data centers, which has been a big source of growth for the economy. Yields rose even as oil prices eased. The price for a barrel of Brent crude slipped 0.7% to settle at $111.28, though it?s still well above its $70 level from before the war with Iran.

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