Nasdaq slides, yields elevated as Mideast conflict fears grow

U.S. government bond yields declined slightly on Tuesday, as fears of an intensifying Middle East conflict heightened inflation concerns and negatively impacted stocks. Oil prices slightly increased, with U.S. crude rising by 0.82 percent to $85.17 a barrel and Brent crude gaining 0.55 percent to $91.37 per barrel. The 30-year Treasury yield reached its highest level since 2007, while the 10-year note yield also experienced its highest since January 2025.

This rise in yields coincided with Japanese government bond yields climbing to 30-year highs, raising concerns that Japanese investors might shift capital out of U.S. debt and into Japanese bonds. The Nasdaq Composite experienced a decline of 1.05 percent, while the Dow Jones Industrial Average dropped 0.12 percent and the S&P 500 fell 0.50 percent.

The Nasdaq slide and elevated yields raised concerns among investors, as they signal a tighter environment and potentially higher borrowing costs.