US Stocks Slide as Yields Surge and Tech Weakens

Major US stock indexes closed lower on Tuesday as rising Treasury yields, weakness in technology stocks, and ongoing geopolitical uncertainty weighed on investor sentiment.
The tech-heavy Nasdaq fell 0.8%, while both the S&P 500 and Dow Jones Industrial Average lost 0.7%. The declines marked the third straight losing session for the Nasdaq and S&P 500, with the Nasdaq at one point falling as much as 1.5% before recovering some ground late in the session.
Technology shares remained under pressure as investors braced for a crucial week of corporate earnings. Semiconductor and memory-chip stocks led the declines amid growing concern that rising bond yields could continue to compress valuations across high-growth sectors.
The benchmark 10-year US Treasury yield climbed to 4.67%, up sharply from 4.59% in the previous session after briefly touching 4.69% — its highest level since January 2025. Higher yields tend to pressure equities by increasing borrowing costs and reducing the relative attractiveness of future corporate earnings, particularly in growth-heavy sectors like technology.
Among the so-called “Magnificent Seven” technology giants, most stocks closed lower, although Apple managed modest gains. Nvidia slipped 0.8% ahead of its closely watched quarterly earnings report due after Wednesday’s market close. Meanwhile, Alphabet fell 2.3% as investors assessed announcements from the ongoing Google I/O developer conference.
Outside technology, markets saw pockets of strength. Walmart hit fresh record highs ahead of its earnings release, while Home Depot gained 0.9% following upbeat financial results. Amer Sports also advanced roughly 2%.
Geopolitical tensions remained a major theme for markets. Investors continued to monitor developments surrounding Iran and concerns over potential disruption to shipping through the Strait of Hormuz, a key artery for global oil supplies.
ING’s head of global debt and interest-rate strategy, Paddy Garvey, said investors remain cautious as geopolitical risks continue to cloud the outlook for a sustained market recovery.
Oil prices eased slightly after comments from US President Donald Trump suggested Middle Eastern allies had requested a delay to any possible military action against Iran. However, crude prices remained elevated overall. West Texas Intermediate crude slipped 0.1% to $108.60 per barrel, while Brent crude fell 0.7% to $111.28.
Gold prices dropped around 1.5% to $4,490 per ounce as a stronger US dollar and higher bond yields reduced demand for the non-yielding metal. Bitcoin traded relatively flat near $76,800, while the US Dollar Index edged higher to 99.32.
Market Outlook
Markets are likely to remain highly sensitive to bond yields, geopolitical headlines, and major technology earnings over the coming sessions.
Nvidia’s earnings report could prove pivotal for the broader technology sector and may influence sentiment across AI-related stocks and the Nasdaq as a whole. Strong results could help stabilize the recent selloff, while disappointment may accelerate pressure on growth stocks.
Meanwhile, traders will continue monitoring developments in the Middle East, particularly any escalation involving Iran or disruptions to shipping in the Strait of Hormuz, which could drive further volatility in oil and risk assets.
Investors will also watch closely for fresh commentary from Federal Reserve officials as rising Treasury yields continue tightening financial conditions and weighing on equity valuations.