Highlights
Stocks declined again Tuesday on rising bond yields amid worries the US-Iran war will soon resume. The Dow Jones industrial average and the S&P 500 both lost 0.7 percent and the Nasdaq was off 0.8 percent. The dollar and bond yields rose while oil prices declined.
Stocks this week have been under selling pressure amid profit-taking following big gains that took the market to record highs last week. Nvidia and other chipmakers were among the day's notable decliners.
A big negative for stocks was the rise in the benchmark US Treasury 10-year note yield to 4.67 percent, up 10 basis points so far this week. The move reflects inflation worries flowing from expected energy price increases after President Trump rejected Iran's latest peace offer and renewed his threat to resume military strikes.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.