U.S. stocks drop across major indices as Treasury yields and oil prices climb

30-year yield tops 5.3% for first time since 2007 financial crisis

U.S. stocks fell across all three major indices on Tuesday as investors weighed rising Treasury yields and climbing oil prices tied to the war between the United States and Iran, United Press International reported.

The Nasdaq Composite led losses with a 1.3% decline, followed by the S&P 500 at 0.6% and the Dow Jones Industrial Average at 0.2%, according to UPI. Tech stocks led the downturn, the wire service noted.

Most analysts attributed the market’s poor showing to news that the 30-year Treasury yield surpassed 5.3% for the first time since the 2007 global financial crisis, reflecting sagging demand from global buyers willing to underwrite U.S. sovereign debt, according to UPI’s reporting.

Concerns over federal deficit spending and a national debt of nearly $40 trillion were pushing Treasury yields higher, analysts cited by UPI said. The 10-year Treasury yield ended at 4.68%, up from below 4% before the start of the U.S.-Iran war in February, UPI reported.

Rising Treasury yields are considered a danger signal for the broader economy and consumer spending because they push up borrowing costs from auto loans to mortgages, UPI noted. The 30-year fixed-rate mortgage stood at 6.75% on Tuesday, up from 6.69% at the end of the prior week.

Oil prices on Tuesday reached their highest level in more than two weeks after President Donald Trump threatened to “bomb” Oman if it interfered with his plans to open the strategic Strait of Hormuz, UPI reported. Benchmark Brent crude futures traded around $91 per barrel, while U.S. West Texas Intermediate crude futures rose to $84 per barrel.