U.S. Stocks Fall as Oil Prices Spike

U.S. stock markets declined on Tuesday, with the Nasdaq, S&P 500, and Dow Jones Industrial Average all ending in negative territory. The downturn followed a 2.6% surge in crude oil prices, driven by concerns over the re-escalation of conflict in the Middle East.

Investors feared that the spike in energy costs would renew inflation and prompt the Federal Reserve System to raise interest rates at its next meeting. This volatility extended to the bond market, where the benchmark ten-year Treasury note reached its highest level since January 2025.

Markets attempted a brief recovery following a report from the Institute for Supply Management that showed a slowdown in U.S. service sector activity, but stocks remained under pressure. Similar downward trends occurred across major European and Asia-Pacific markets.