Stock market today: Dow, S&P 500, Nasdaq futures extend losses amid US-Iran tensions

On Tuesday, US stocks experienced a decline, with tech stocks leading the downward trend and elevated oil prices and rising government bond yields impacting the markets. The tech-heavy Nasdaq Composite fell 1.3%, pulling down the major indexes. The Dow Jones Industrial Average dropped 0.2%, while the S&P 500 decreased by 0.6%. This decline continued after a negative start to the trading week.

Oil prices surged to their highest level in over two weeks, reaching near $91 per barrel for Brent crude and $84 per barrel for US benchmark West Texas Intermediate crude. This increase was attributed to President Trump's intention to impose further economic pressure on Iran and his threat to bomb Oman if it interferes with the US plans for the Strait of Hormuz. The US Strategic Petroleum Reserve had also reached its lowest level since 1982.

Concerns over government borrowing, combined with an increase in AI borrowing, further contributed to rising bond yields globally. The 10-year Treasury yield eased slightly but remained elevated at 4.70%, while the 30-year yield held near a 19-year high. Despite the market downturn, earnings have provided support to equities this reporting season.

Home Depot's stock remained relatively stable after reporting a slight improvement in sales for the second quarter, as customers shifted towards smaller projects during the summer months. Conversely, Klarna's stock suffered a decline due to a trimmed outlook.