U.S. stocks slide from records as bond market rattles

The S&P 500 fell 0.5% and was on track for a third straight loss after setting its latest all-time high. The Dow Jones Industrial Average was down 165 points, or 0.3%, as of 12:29 p.m. Eastern time, and the Nasdaq composite was 0.9% lower.

That followed mixed moves for stock markets abroad, while oil prices eased in their latest yo-yo move. Falling technology stocks in Asia dragged South Korea’s Kospi down 3.3%, but Germany’s DAX returned 0.4%.

Tech stocks are faltering following huge runs made because of excitement around artificial intelligence technology, runs that critics said made them too expensive. The stumble comes as oil prices swing on uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers. That in turn has pushed yields higher in bond markets, which is dragging on economies and all kinds of other financial markets.

The wait is on, meanwhile, for Nvidia to report its latest quarterly results. The chip company is due to report on Wednesday, and it’s routinely blown past analysts’ expectations each quarter. Not only that, it’s provided forecasts for future growth that have consistently topped Wall Street’s.

How it does could determine whether technology stocks and the larger U.S. stock market can maintain their rally. Nvidia slipped 0.2% Tuesday, but was one of the heaviest weights on the S&P 500 because of its immense size.

“Every flow has its ebb,” Rex Feng, Venu Krishna, and other strategists at Barclays Capital wrote in a report. They said investors have been pumping more money than usual into U.S. stock funds, which helped fuel “the fastest rebound in decades; now the pendulum could swing backwards.”