US stocks close lower as Treasury yields rise

US stocks fell at the close on Tuesday, as the selloff in sovereign bonds continued, chip stocks saw sharp volatility, and economic and geopolitical uncertainty continued to weigh on investor sentiment.

At the close, the Dow Jones Industrial Average fell 0.65%, or 322 points, to 49,363.

The broader S&P 500 declined 0.67%, or 49 points, to 7,353, while the Nasdaq Composite lost 0.84%, or 220 points, to 25,870, with both indices posting losses for a third straight session.

In the chip sector, the Philadelphia Semiconductor Index settled at 11,305 points after dropping 3.60% earlier in the session on profit-taking triggered by concerns over company valuations and the sustainability of data center spending.

In Europe, the STOXX Europe 600 rose 0.19% to 611 points, supported by positive performance in the defense sector.

The UK’s FTSE 100 edged up nearly 0.10% to 10,330 points, Germany’s DAX gained 0.38% to 24,400 points, while France’s CAC 40 fell about 0.10% to 7,981 points.

In Japan, the Nikkei 225 declined 0.45% to 60,550 points, while the broader TOPIX rose 0.65% to 3,850 points.

In oil markets, Brent crude futures for July delivery fell 0.73%, or 82 cents, to $111.28 a barrel.

US Nymex crude futures for June delivery — which expired today — dropped 0.82%, or 89 cents, to $107.77 a barrel.

For gold, futures of the precious metal for June delivery fell 1%, or $46.80, to $4,511.20 an ounce.

Volatility in chip stocks weighed on Wall Street, as long-term Treasury yields touched their highest levels since 2007. This added further uncertainty to the monetary policy outlook amid concerns over a prolonged closure of the Strait of Hormuz and worsening inflationary pressures.