Just a little pullback, Nasdaq falls over 1%

Wall Street fell on Tuesday, with the big story being a rout in U.S. Treasury bonds that took the longer-end 30-year yield to a fresh 19-year high and spilled over into global fixed-income markets. Rate-sensitive technology stocks were the hardest hit, and a climb in oil prices also clouded the mood.

The bond sell-off has come despite benign U.S. consumer and producer price reports last week. Inflationary jitters from rising oil prices due to an impasse between Washington and Tehran have countered the soft data, while massive bond offerings from mega-tech firms to fund artificial intelligence infrastructure buildouts have compounded debt worries.

At 12:25 ET (16:25 GMT), the benchmark S&P 500 index shed 0.5% to 7,706.73 points and the blue-chip Dow Jones Industrial Average lost 0.1% to 53,406.64 points.

The NASDAQ Composite fell the most, declining 1.1% to 26,357.99 points. Technology stocks are sensitive to interest rates and bond yields because their valuations depend on future profits. Rising yields lower the present value of these future earnings. Rising yields also drive up borrowing costs, which in turn makes it costlier for tech companies to fund capital spending.