Major U.S. indexes retreated as bond yields hit 19-year highs and energy prices surged, overshadowing a recovery in the semiconductor sector.
Brent crude rose 2.6% to $108.41 on uncertainty over the Saudi East-West pipeline outage.
U.S. crude added 3.3% to $104.76 amid the same pipeline disruption concerns.
The Dow Jones Industrial Average dropped 0.7% as interest rate worries returned.
The Nasdaq Composite matched the Dow's decline, falling 0.7%.
Goldman Sachs fell 2.9% and was the day's biggest drag on the Dow.
The United States Oil Fund gained 4.1% as oil prices rose sharply.
The S&P 500 fell 0.4%, a lighter hit than the Dow and Nasdaq.
Qualcomm rose 4% as chip stocks recovered.
JPMorgan Chase dropped 1.6% amid financial sector weakness.
Chevron posted a 2% gain as rising oil prices made it one of the few Dow stocks to advance.
Amazon lost access to cloud computing centers in Bahrain and the UAE due to irreparable damage from the Iran war.
Nvidia edged higher as Monday's AI panic mostly unwound.
Advanced Micro Devices gained 2.3% as the chip selloff paused.
Apple faces a regulatory review of its software warranty policy in India.
The Dow Jones Industrial Average and Nasdaq Composite both fell 0.7% on Tuesday as investors shifted focus from AI volatility to persistent interest rate concerns. With the 10-year Treasury yield reaching 5.04%, a level unseen since 2007, financial stocks faced significant pressure while energy shares rallied on supply disruption fears.
The market decline was driven by renewed concerns over rising interest rates, evidenced by the 10-year Treasury yield hitting 5.04%, and ongoing energy supply uncertainties.