Stock market today: Dow, S&P 500, Nasdaq pare losses as rising bond yields maintain pressure
Quick Take
U.S. stock indices recover slightly as rising bond yields continue to exert pressure.
Key Points
- Dow, S&P 500, and Nasdaq reduce earlier losses.
- Bond yields rise, impacting market sentiment.
- Investors remain cautious amid economic uncertainty.
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~12 min readUpdated 1 min read
US stocks pared losses on Tuesday afternoon as Treasury yields surged and tech stocks resumed a pullback despite apparent signs of progress toward an end to the US-Iran war.
The tech-heavy Nasdaq Composite (^IXIC) sank 0.3% after falling more than 1% earlier in the session, while the S&P 500 (^GSPC) dropped 0.2% on the heels of back-to-back losses. The Dow Jones Industrial Average (^DJI) declined by about 0.2%.
Rising Treasury yields continued to put pressure on stocks, as the benchmark 10-year rate (^TNX) climbed above 4.6% again early Tuesday and the 30-year yield (^TYX) briefly hit 5.2%. Worries about higher inflation have lifted bond yields as blockades in the Strait of Hormuz spurred a rally in oil prices.
Wall Street is debating whether the Federal Reserve will hike interest rates to get inflation under control. That’s seen as putting the appetite for growth stocks at risk, with high-flying AI stock valuations particularly in focus.
Optimism about a resolution crept into markets after President Trump said on Monday that “serious negotiations” are taking place, and there is a “very good chance” of a deal on Iran’s nuclear program. He said that at the request of Gulf allies, he had halted military action against Iran that was scheduled to take place on Tuesday.
The release of Nvidia (NVDA) earnings on Wednesday is the focal point of the week. Investors’ expectations for the world’s most valuable company are sky high. Moreover, Nvidia is a bellwether for the AI trade, which has become increasingly important in propping up markets amid inflation and geopolitical uncertainty.
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Micron, Sandisk rebound as semiconductor sell-off reverses
Semiconductor stocks rebounded on Tuesday after a sell-off among some of this year’s highfliers.
Memory maker Micron (MU) jumped 5% while Sandisk (SNDK) also reversed course, jumping 3% by 1:45 p.m. ET.
Arm Holdings (ARM) and Intel (INTC) also climbed into green territory during Tuesday’s session.
Rising bond yields have put a damper on equity valuations in recent sessions, as investors expect the cost of capital to rise. The market has been pricing in a more hawkish Federal Reserve amid elevated energy prices and rising inflation expectations.
Tech losses accelerate in afternoon
Tech stocks broadly fell on Tuesday as investors went risk-off and perhaps took some profits as higher bond yields weighed on equity markets.
As my colleagues Brian Sozzi and Ines Ferré pointed out this morning, high-flying chip stocks like Micron (MU) and SanDisk (SNDK) have fallen over the past five days, while beaten-down software names saw some momentum return.
But by afternoon trading, the tech sector was a sea of red, and both the Tech-Software Sector ETF (IGV) and the Philadelphia Semiconductor Sector Index (^SOX) fell.
Tech stocks fell across the board on Tuesday. The “Magnificent Seven” stocks — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia (NVDA) — were under pressure too, with Amazon and Tesla seeing the biggest declines.
OpenAI founding member who led AI efforts at Tesla joins Anthropic
OpenAI (OPAI.PVT) founding member Andrej Karpathy has joined rival lab Anthropic (ANTH.PVT), Karpathy said on Tuesday.
In a post to X, Karpathy announcing his decision, the AI researcher wrote, “I think the next few years at the frontier of LLMs will be especially formative.”
After working as a founding member of OpenAI, Karpathy joined Elon Musk’s Tesla (TSLA) as the carmaker’s head of artificial intelligence and autopilot vision. He then re-joined OpenAI before departing the AI lab once more.
Karpathy is also credited with popularizing the term “vibecoding.”
Anthropic announced Tuesday that the auditing giant KPMG is integrating the AI lab’s Claude product throughout its operations, and that all of KPMG’s employees will have access to the AI software.
Oil holds onto losses as NATO reportedly considers operation to help vessels exit Hormuz strait
Oil prices fell on Tuesday as President Trump held back on renewed military strikes inside Iran and NATO said it may consider missions to help vessels cross the Strait of Hormuz.
Futures on Brent crude, the international benchmark, fell 1.3% to trade just below $111 per barrel, while those on US benchmark WTI crude gave up 0.9% to trade below $103.50.
Leading headlines on Tuesday was news that NATO is considering missions for oil tankers trapped in the Persian Gulf to cross through the Strait of Hormuz if the waterway isn’t reopened by early July, Bloomberg reported. It is unclear exactly what the operations would entail.
While the idea has support from several member countries, it has not yet reached the unanimous consent needed to put the plan in action, per Bloomberg.
“The political direction comes first, and then the formal planning happens after that,” Alexus Grynkewich, NATO’s supreme allied commander in Europe, said at a press conference on Tuesday. “Am I thinking about it? Absolutely.”
Such a move would come after the White House launched and only three days later canceled its “Project Freedom” operation after opposition from Iran. The operation was intended to provide military support to vessels looking to make the crossing, though it stopped short of full naval escorts.
The plan would also represent a marked shift for European countries that have so far not intervened in the war in Iran, saying they would get involved in maintaining safe passage through the strait only after the war ended.
The reporting on NATO’s thinking comes after Trump said Monday evening that he had called off airstrikes on Iran planned for Tuesday after requests from several Gulf nation leaders, who he said communicated that a peace agreement was close to being made.
“I hope we don’t have to do the war, but we may have to give them another big hit,” Trump told reporters on Tuesday. “I’m saying two or three days, maybe Friday, Saturday, Sunday. Something maybe early next week — a limited period of time.”
Tesla stock falls as upcoming SpaceX IPO offers Musk fans another alternative
Tesla (TSLA) stock fell 3.5% on Tuesday, leading the “Magnificent Seven” stock declines, amid a broader tech rout and concerns that CEO Elon Musk’s attention may be split by the upcoming SpaceX (SPAX.PVT) public debut.
On Monday, Musk’s rocket and artificial intelligence company, SpaceX, reportedly issued a 5-for-1 share split ahead of its initial public offering, making the stock even more attractive for investors who want to buy into the Musk universe of companies. SpaceX’s IPO could list on the Nasdaq as early as June 12, Yahoo Finance’s Pras Subramanian reported.
The emergence of another Musk stock has Tesla investors worried that it could detract from the CEO’s attention while the electric vehicle maker boosts capital expenditures to expand into AI, robotaxis, and humanoid robots. Year to date, Tesla stock is down more than 11%.
“This cannot be a positive for Tesla,” Joe Gilbert, portfolio manager at Integrity Asset Management, told Bloomberg about the SpaceX IPO. “We believe that Musk’s focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”
30-year Treasury yield hits 5.2% as bond sell-off continues
US Treasury yields continued to grind higher on Tuesday as investors awaited peace negotiations between the US and Iran and fretted about rising inflation from the surge in oil prices.
The 10-year yield (^TNX) rose about 6 basis points to 4.68%, while the 30-year yield (^TYX) rose 5 basis points to 5.2%, hitting its highest level since July 2007.
The sell-off in bonds began in late February, when the war in the Middle East broke out, driving oil prices to their highest levels in years. The stock market, ballasted by strong earnings, managed to climb to record highs in recent weeks.
But now, with the 10-year yield well above 4.5% and the 30-year above 5%, levels that begin to exert downward pressure on equities, stocks are beginning to feel some pain.
“I think the simple thing is that if rates don’t go down here, the [price-to-earnings] multiple [on the equal-weighted S&P 500] is not going to rebound higher, and it’s going to get more difficult and challenging for equities ot make gains, even in a strong earnings backdrop,” Piper Sandler chief investment strategist Michael Kantrowitz told Yahoo Finance on Tuesday.
Read more: How soaring Treasury yields could impact your finances
Stocks open lower as Treasurys rise, oil remains above $100 per barrel
US stocks opened lower on Tuesday as concerns around inflation, the war in Iran, Federal Reserve rate hikes, and rising bond yields took their toll on investor sentiment.
The tech-heavy Nasdaq Composite (^IXIC) sank roughly 0.6%, while the S&P 500 (^GSPC) dropped 0.4% on the heels of back-to-back losses. The Dow Jones Industrial Average (^DJI) fell 0.5%.
The benchmark 10-year rate (^TNX), closely watched after hitting 12-month highs, continued to climb, reaching 4.64% at the market open.
Oil prices, meanwhile, pulled back, with Brent crude (BZ=F) hovering around $110 per barrel and the US benchmark WTI crude (CL=F) trading at $103 per barrel.
Wall Street leaders remain bullish in the face of uncertainty
In interviews with Bloomberg on Tuesday, JPMorgan’s global chair of investment banking and the co-heads of Goldman Sachs’ international business said the uncertainty around artificial intelligence and the conflict in Iran haven’t done much to dent rosy outlooks on Wall Street.
Even as the war in Iran has stymied global energy markets, Goldman international co-head Kunal Shah said, business hasn’t slowed down.
“Even though our clients don’t have clarity, I think the good thing here is that that hasn’t actually held up activity,” Shah said. Capital deployment has remained steady, Shah and his co-head Anthony Gutman said, with opportunity in the Middle East on the other side of the war.
At the same time, as investment in the AI build-out has surged, companies have begun making the shift from theory to reality, spurring even more investment, JPMorgan’s Kevin Brunner said on Tuesday at a conference hosted by Bloomberg.
“We’ve actually gone from hype to real execution and scaling,” Brunner said, as reported by Bloomberg. “Every company here is very focused on what’s their long-term strategic narrative, and are in the early stages of doing so.”
That enthusiasm is making the M&A dealmaking market hotter, Brunner said, noting that the bank is seeing clients looking for major deals to try to get positioned ahead of the AI boom.
Deutsche Bank: 3 factors that could cause a summer stock market correction
Yahoo Finance’s Brian Sozzi reports:
Several things have to happen to set the stage for a summer stock market correction, Deutsche Bank strategist Henry Allen warned. To get a more pronounced sell-off in stocks, Allen said, past experience has shown it would require at least one of the following factors:
“So far, it’s tough to argue we have any of these,” Allen noted. “The closest is the point on the ‘sustained’ oil shock, as markets are increasingly pricing in a longer period of elevated oil prices. But even there, the six-month Brent future is still only just above $90 a barrel, and declining energy intensity means that a given level for oil prices doesn’t create the economic shock it used to. So unless we see a clear change in these fundamentals, then the resiliency of risk assets is not particularly remarkable, but is in keeping with the historical record of recent decades.”
CoreWeave stock drops after Blackstone, Google announce AI computing joint venture
Cloud computing companies CoreWeave (CRWV) and Nebius (NBIS) are about to have stiffer competition.
The two stocks fell around 3% after Blackstone (BX) and Google (GOOG) announced on Monday night that they’re launching a new artificial intelligence computing firm that will provide data center capacity, operations, networking, and Google Cloud's Tensor Processing Units (TPUs) as a compute-as-a-service offering.
Yahoo Finance’s David Hollerith reports that the business will give customers another way to access Google’s TPUs, in a similar fashion to cloud provider CoreWeave. Blackstone said it will make an initial $5 billion equity investment through its funds, and it expects the company’s first 500 megawatts of power to come online by 2027.
Home Depot reaffirms outlook as small DIY projects provide sales boost
Home Depot (HD) reaffirmed its 2026 outlook as homeowners continued to invest in smaller, do-it-yourself type projects, despite a tough housing market backdrop, concerns about higher gas prices, and economic uncertainty.
“There's no question that the average consumer is feeling pressure from rising fuel costs,” CFO Richard McPhail told Yahoo Finance. “Our customer tends to have higher incomes and higher housing wealth, but they do tell us that they're feeling the impact of fuel costs.”
In the quarter, the company posted same-store sales growth of 0.6%, which slightly missed the Street’s outlook of 0.9%, per Bloomberg consensus data.
Revenue beat expectations, growing roughly 5% year over year to $41.8 billion, higher than the $41.6 billion the team posted this time last year. Adjusted earnings came in at $3.43, topping expectations of $3.41.
SpaceX IPO adds second Musk stock. It’s a problem for Tesla.
From Bloomberg:
For years, there was only one way for mom-and-pop investors to buy into Elon Musk’s vision: shares of Tesla (TSLA) Inc. That’s about to change — and it’s a serious risk for Tesla investors.
With the imminent initial public offering of Space Exploration Technologies Corp., better known as SpaceX (SPAX.PVT), the market will have an additional entry point for the “Muskonomy.”
Wall Street pros see investors’ attention and capital inevitably being siphoned away from Musk’s electric-vehicle maker and to his shiny new toy.
People gather on South Padre Island to watch SpaceX Starship Rocket on August 26, 2025. · RONALDO SCHEMIDT via Getty Images “This cannot be a positive for Tesla,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “We believe that Musk’s focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”
Indeed, the seemingly inherent competition between Tesla and SpaceX is a key reason why Musk is reportedly considering merging the two companies.
Asian markets drop as global bond rout intensifies economic stress
Reuters reports:
Asian shares were mixed Tuesday as uncertainty about what will happen with the Iran war roiled global markets.
Japan's benchmark Nikkei 225 (^N225) lost 0.6% in morning trading to 60,433.79, erasing initial gains after the government reported that the economy grew for the second straight quarter in January-March, mainly due to better than expected consumer spending.
South Korea’s Kospi (^KS11) sank more than 4% in early trading and was down 3.5% at 7,249.73 by midday. Shares in Samsung Electronics slipped 3.8% and SK Hynix fell 4%, tracking losses in tech shares overnight on Wall Street.
Australia's S&P/ASX 200 added 0.9% to 8,582.80. Hong Kong's Hang Seng (^HSI) climbed 0.5% to 25,811.28, while the Shanghai Composite shed 0.3% to 4,121.11.
Oil falls following Trump comments on planned Iran strikes
Bloomberg reports:
Oil fell after President Donald Trump said he’d called off a strike on Iran planned for Tuesday following an appeal by Persian Gulf allies.
West Texas Intermediate (CL=F) for July dropped below $103 a barrel, after rising 3.3% on Monday, while Brent (BZ=F) closed above $112. Trump said in a social media post that the leaders of Saudi Arabia, Qatar and the United Arab Emirates asked “to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place.”
Oil has rallied on uncertainty about the talks, and the possibility that the near-total closure of the Strait of Hormuz will choke off Persian Gulf energy supplies for longer. Trump has repeatedly threatened renewed military action against Iran without following through, and Tehran didn’t immediately confirm renewed discussions.
“The president’s calling off tomorrow’s ‘scheduled’ attack is a positive,” said Mark Malek, chief investment officer at Muriel Siebert & Co. “The change of plans just shows how stochastic the situation is with negotiations.”
Trump said the US is prepared to attack if an acceptable deal isn’t reached but didn’t set a deadline.
— Originally published at finance.yahoo.com
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