US stocks fall as Iran deadlock lifts oil and Treasury yields
What's new: The 30-year Treasury yield briefly topped 5.33%, a 19-year high, as investors weighed inflation, deficits and Hormuz risks.
US stocks opened lower Tuesday as fading odds of a US-Iran deal kept oil prices high and pushed borrowing costs higher. The Dow Jones Industrial Average fell 105.3 points, or 0.20%, at the open, while the S&P 500 dropped 0.58% and the Nasdaq Composite slid 1.12%. In the bond market, the 30-year Treasury yield briefly rose above 5.33%, its highest level in 19 years, before easing to about 5.285%. The 10-year yield traded near 4.706%. Investors also digested a worsening US fiscal picture after July's deficit reached $432.3 billion, lifting the year-to-date shortfall to nearly $1.8 trillion. Middle East tensions added pressure after a 60-day deadline for Washington and Tehran to reach a peace deal expired, stoking fears of a longer disruption around the Strait of Hormuz.