Rising oil prices are raising inflation fears and pushing bond yields higher, weighing down stocks on Wall Street. The S&P 500 fell 0.7% Tuesday. The Dow Jones Industrial Average fell 299 points, or 0.6%, as of 9:33 a.m. Eastern time. The Nasdaq composite fell 1.4%. Much of the pressure being felt by Wall Street is coming from a sell-off in U.S government bonds. The yield on the 10-year Treasury rose. Oil prices continued climbing, putting more pressure on inflation. Markets in Europe were mostly lower and markets in Asia were mixed.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
A heavy sell-off in U.S. government bonds is gaining momentum with anxiety about persistent inflation driving prices lower.
The yield on the two-year Treasury, which closely tracks expectations about Fed moves, rose to 4.35%, on Tuesday. That’s up significantly from about 3.50% at the beginning of 2026. Meanwhile, the yield on the 10-year Treasury rose to 4.79% from 4.73% late Friday. That’s the highest it has been since January 2025.
The bond sell-off is global, with other nations facing the same economic pressures.
