S&P 500 falls, hurt by heightened global bond yields and oil prices: Live updates
Traders work on the floor at the New York Stock Exchange in New York City, U.S., June 3, 2026.
Brendan McDermid | Reuters
The S&P 500 fell on Tuesday, pressured by a run in sovereign bond yields to multidecade highs amid concerns of persistent inflation and elevated oil prices. A pullback in semiconductor stocks also weighed on the broader market.
The broad market index declined 0.5%, while the Nasdaq Composite was down 1.1%. Western Digital fell more than 5%, weighing on the Nasdaq. Sandisk dropped more than 6%. Marvell Technology and Seagate Technology were also down by more than 6% and more than 5%, respectively.
The Dow Jones Industrial Average traded around the flatline, aided by a 1% advance in Home Depot shares after the home improvement giant posted a second-quarter earnings beat.
Global yields have been rising of late as investors worry that oil prices could stay elevated, with negotiations between Iran and the U.S. stalling. U.S. crude rose on Monday and climbed another 1% on Tuesday to trade above $85 per barrel.
The U.S. 30-year Treasury bond yield in particular was last trading at levels not seen in nearly two decades. The yield on Monday hit its highest level since June 2007.
Elsewhere, Japan’s 10-year bond yield reached a 30-year high. Germany’s 30-year bond yield hit its highest since 2011, and the French 30-year government bond yield reached its highest point since 2008.
“Because of the strength of the AI trade, stocks haven’t cared about the persistent rise in global bond yields but it’s just a matter of when, not if, if this trend in rates continues, which I think it will as a bear on long duration,” said Peter Boockvar, chief investment officer at One Point BFG Wealth Partners.
President Donald Trump said in a Truth Social post Tuesday that the U.S. is not currently engaging in any “talks or conversations” with Iran, nor are there any scheduled. He also said that the naval blockade “remains in full force and effect.”
On Monday, the president said he would attack Oman “if it gets in the way” of U.S. efforts to negotiate with Iran.