The Dow fell 0.86% as Treasury yields hit a 16-year high, while oil prices climbed on supply concerns and investors braced for the upcoming Federal Reserve interest-rate decision.
10-year Treasury yield breached 5% for the first time since 2007.
Dow dropped 449 points as 10-year Treasury yield hit 5%.
WTI crude rose above $103 after Saudi Arabia shut a key pipeline.
Brent crude rose 1.6% to above $107 on supply concerns.
S&P 500 fell 0.34% amid rising yields and Fed uncertainty.
Nasdaq Composite declined 0.48% as tech stocks were mixed.
Nvidia stock rebounded 1% as AI-related stocks recovered.
Micron Technology gained roughly 1% in the AI stock rebound.
Advanced Micro Devices advanced more than 2%.
Intel stock rose more than 2%.
U.S. equities retreated Tuesday as the 10-year Treasury yield surged past 5% for the first time since 2007. Investors are bracing for a widely expected Federal Reserve rate hike on Wednesday, while rising oil prices and geopolitical tensions further dampen market sentiment. Despite the broader sell-off, AI-linked stocks including Nvidia and AMD managed to stage a modest rebound.
Stocks fell primarily due to the 10-year Treasury yield crossing the 5% mark, which increases borrowing costs and creates headwinds for equity valuations.
Fed funds futures indicate a 90% to 93% probability that the central bank will implement a quarter-percentage-point interest rate hike.