Global stocks slid Tuesday, dragged down by a surge in long-term U.S. Treasury yields to levels not seen in nearly two decades, while oil prices eased as investors weighed the latest headlines from U.S.-Iran talks.
President Donald Trump said the U.S. may need to strike Iran again, having paused a planned attack after a new Tehran proposal to end the war. Vice President JD Vance noted significant progress in talks, saying neither side wants a resumption of military conflict.
Brent crude settled 82 cents lower at $111.28 a barrel, with U.S. West Texas Intermediate down 89 cents at $107.77.
The 30-year Treasury bond yield hit its highest since 2007, last around 5.18%. The 10-year yield also rose to its highest in over a year, as mounting inflation fears pushed borrowing costs higher and challenged stock valuations.
The Dow fell 322 points (0.65%) to 49,363.88. The S&P 500 dropped 49 points (0.67%) to 7,353.61. The Nasdaq Composite lost 220 points (0.84%) to 25,870.71.
European stocks bucked the trend, with the STOXX 600 edging up 0.19%, recovering some ground after Friday's 1.5% drop.
The dollar gained on higher yields, with the dollar index up 0.34% to 99.33. Gold eased 1% to $4,511.20.
All eyes now turn to Nvidia's earnings Wednesday, a key test for the AI trade and the world's most valuable company.