Stocks slip after oil prices and the bond market crank up the pressure

U.S. stocks slipped Tuesday as higher oil prices and rising Treasury yields increased pressure on Wall Street. The S&P 500 fell 0.4%, the Dow dropped 406 points (0.8%), and the Nasdaq was down 0.7% by 12:52 p.m. Eastern. The yield on the 10-year Treasury climbed to 5.00% from 4.97% late Monday, briefly touching 5.04% overnight—its highest level in years and the first move above 5% since 2023. Higher yields raise borrowing costs across the economy and make investors less willing to pay premium stock valuations. Oil firmed as Brent crude rose 3% to $108.87 amid uncertainty around shipping through the Strait of Hormuz, and markets awaited a possible Federal Reserve rate hike Wednesday.