US stocks dip as markets fret over inflation
Wall Street stocks declined early Tuesday, driven by inflation concerns stemming from high oil prices due to the prolonged Middle East war, and worries over rising bond yields.
- Impact of high oil prices and Middle East conflict.
- Analyst views on rising bond yields affecting equities.
- Semiconductor stock sell-off before Nvidia earnings.
NEW YORK: Wall Street stocks retreated early Tuesday as analysts pointed to angst over inflation pressures as the prolonged Middle East war kept oil prices high.
Equities had until recently “shrugged off the effects of higher yields,” Interactive Brokers’ Steve Sosnick said of increases in bond yields.
“After pretending this was not a problem, I think (the market) has now decided that higher yields are in fact a problem,” Sosnick said. “But we aren’t seeing panic or anything like that.”
About 10 minutes into trading, the Dow Jones Industrial Average was down 0.8 percent at 49,289.53.
The broad-based S&P 500 dropped 0.4 percent to 7,372.49, while the tech-rich Nasdaq Composite Index shed 0.3 percent to 26,024.82.
Iran’s army warned on Tuesday it would “open new fronts” against the United States if it resumes attacks, after President Donald Trump said he had held off launching a new offensive in hopes of striking a deal.
Major US indices were also under pressure Monday as semiconductor equities sold off a fraction of recent gains. Sosnick described the dynamic as profit-taking ahead of Wednesday’s release of Nvidia’s earnings.
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