Falling oil prices help calm the stock and bond markets

Falling oil prices on Tuesday helped steady both bond and stock markets, easing worries that higher inflation would keep Treasury yields elevated. The S&P 500 rose 0.2% and moved closer to its all-time high set earlier this month. The Dow gained 107 points (0.2%) and the Nasdaq climbed 0.4%. Brent crude fell 3.9% to $87.05 and was on track for a second straight decline after 13 gains in 14 days. The drop came even as U.S.-Iran tensions appeared to rise after new sanctions. In parallel, Pakistan said a delegation left Iran after talks on reopening the Strait of Hormuz and reviving negotiations. The 10-year Treasury yield fell to 4.64% from 4.70% late Monday, though it remains above 3.97% seen before the Iran-war inflation surge.