SynopsisUS stocks fell as rising oil prices and Treasury yields added pressure to markets ahead of the Federal Reserve’s expected rate hike. 35 a barrel, while the 10-year Treasury yield crossed 5%, raising concerns over inflation, borrowing costs and stretched stock valuations.

AgenciesUS stocks fall as oil and yields rise. US stocks fell on Tuesday as another jump in oil prices and a sharp rise in Treasury yields intensified pressure on investors, with markets already bracing for the Federal Reserve’s expected interest-rate hike, AP reported.

8%. 04% overnight.

Rising yields raise the pressureThe 10-year Treasury yield is closely watched because higher borrowing costs can weigh on households, businesses and the government. The 10-year yield has been climbing towards levels last seen years ago.

It briefly crossed 5% on Monday for the first time since 2023, adding to concerns over inflation, the US government's debt burden and the outlook for economic growth. The rise in yields has accelerated since February, when the war with Iran pushed oil prices sharply higher.

That has raised concerns that inflation could remain elevated for longer, complicating the outlook for monetary policy. Oil keeps inflation worries aliveOil added to the pressure on Tuesday after a volatile morning.

35 a barrel, remaining far above its roughly $72 level in early July and before the war with Iran began in February. Investors remain concerned about whether the conflict will allow oil tankers to move freely through the Strait of Hormuz, a key route for global energy supplies.

The oil surge comes just as markets expect the Federal Reserve to raise the federal funds rate on Wednesday for the first time in three years. While traders still see a small possibility that the Fed could hold rates steady, any surprise decision could trigger a sharp market reaction.

Fed officials are also due to release their forecasts for interest rates in the coming years, potentially giving investors more clues about how policymakers view inflation and future rate moves, AP reported. Consumer-focused stocks were among the biggest losers as higher costs and tighter financial conditions raised concerns about household spending.

2%. 7% after reporting weaker-than-expected quarterly results.

Some AI stocks were steadier after a global selloff the previous day. 2%.