S&P 500 falls for a third day, as elevated global bond yields and oil prices weigh on market: Live updates

[Zakana]

TheS&P 500fell on Tuesday, pressured by a run in sovereign bond yields to multidecade highs amid concerns of persistent inflation and elevated oil prices. A pullback in semiconductor stocks also weighed on the broader market.

The broad market index declined 0.69%, while theNasdaq Compositewas down 1.33%.Western Digitalfell 7%, weighing on the Nasdaq.Sandiskdropped 9%.Marvell TechnologyandSeagate Technologywere also down by 9% and 8%, respectively. TheDow Jones Industrial Averageshed 116 points, or 0.22%.

The U.S.30-year Treasurybond yieldscored a fresh 19-year highTuesday. Elsewhere, Japan's 10-year bond yieldreached its highest level in three decades. Germany's 30-year bond yield hit its highest since 2011, and the French 30-year government bond yield reached its highest point since 2008.

Yields have been rising of late as investors worry that oil prices could stay higher, with negotiations between Iran and the U.S. stalling.U.S. crude futuresrose on Monday and climbed another 0.5% on Tuesday to trade at $84.94 per barrel.

"The market is overlooking the challenge on the bond yield side and preferring to focus on the solid earnings and the enhancements in artificial intelligence," said Bill Fitzpatrick, portfolio manager at Logan Capital Management. "At some point, we're probably going to be vulnerable to a bit of a sell-off."

"The factors that are driving up bond yields are not going to alleviate tomorrow," he added.

Hopes for an end to the Middle East conflict continued to fade Tuesday after PresidentDonald Trumpsaid in aTruth Social postTuesday that the U.S. is not currently engaging in any "talks or conversations" with Iran, nor are there any scheduled. He also said that the naval blockade "remains in full force and effect."

However, on Monday, the president said he wouldattack Oman"if it gets in the way" of U.S. efforts to negotiate with Iran.

Johnson & Johnson on track for record close

Shares ofJohnson & Johnsonrose more than 3% in afternoon trading Tuesday, heading for a fresh closing record.

If that move higher holds through the close, it would mark the stock's first record close since July 7, when it gained 3.1% to $267.24.

The stock has gained roughly 31% year to date, more than double theS&P 500's advance in the same period.

Health care, biotech stocks climb to all-time highs Tuesday

Health care and biotechnology stocks climbed to all-time highs Tuesday as investors searched for pockets of strength in the market beyond tech.

The $44 billionState Street Health Care Select Sector SPDRETF, made up of 62 stocks, reached a record. The fund's total return over the past three months, including reinvested dividends, is 15.6% versus 4.8% for the S&P 500. The fund consists of 62 stocks, with Eli Lilly and Johnson & Johnson comprising 26% of the portfolio.

The $19 billionVanguard Health Care Index Fundalso rose to a record, bringing its three-month total return to 16.6%. The fund contains 415 stocks and Lilly and J&J take up 22.2% of the total.

Also touching new highs Tuesday:IShares Biotechnology ETF(ahead 21.1% in three months);Nasdaq Biotechnologyindex (higher by 18.5% in three months); andS&P 500 Health Careindex (15.7% total return in three months).

What's behind the move in U.S. government debt yields

Treasury yields are continuing to climb, and at a particularly bad time as higher rates worsen the impact of the nearly $40 trillion government debt load.

Longer-dated debt has been hit particularly hard by the recent leg up, pushing the 30-year bond yield close to its highest level since the early part of the 21st century. Other maturities also have risen, owing to a number of factors conspiring to raise financing costs.

Fixed income strategists ascribe the run that began in June to a number of variables: Intensified concerns over abudget deficitthat appears set to eclipse its 2025 level; inflationin an ominous holding pattern above the Federal Reserve's 2% targetdespite moderating data over the past two months; and a rash of corporate debt issuance competing with Treasurys for investors' favor.

Broadly, the move can also be attributed to a rising term premium, or the extra yield investors demand to hold U.S. debt.

Read morehereto learn about the other factors driving up yields.

Home Depot fails to raise full year guidance again

For the second consecutive quarter, Home Depot left its outlook unchanged despite beating on both earnings and revenue. That is likely dampening the exuberance over its better-than-expected second quarter performance.

Despite posting its strongest same-store sales growth in almost four years and getting a boost from $730 million in tariff refunds during the latest quarter, the home improvement retailer stood pat on its guidance for this year – a forecast it first gave at an investor conference almost 9 months ago.

So far, the retail giant has had a good 2026. Since that initial guide was telegraphed way back in December, Home Depot has beaten EPS estimates by 21 cents and has bettered revenue expectations by almost $1 billion during the first half of the current fiscal year. Yet that hasn't been enough to move the needle on full year guidance – likely indicating some caution in the back half of the year.

On this morning's call with analysts, Home Depot executives cited headwinds from "unplanned pressure from fuel, energy and other product input costs" while "larger discretionary projects remain under pressure."

Carvana dips after insider sale

Share of online auto retailerCarvanawere down more than 3% to $67.81 as of 12:32PM on Tuesday following sales of the stock from two of its directors last week.