US sharemarkets closed lower on Tuesday, with the S&P 500 recording its third consecutive decline as rising bond yields and inflation concerns weighed on investor sentiment.
The S&P 500 fell 0.67% to close at 7,353.61, while the Nasdaq Composite declined 0.84% to 25,870.71. The Dow Jones Industrial Average lost 322.24 points, or 0.65%, to finish at 49,363.88.
Technology and semiconductor stocks remained under pressure ahead of Nvidia’s quarterly earnings due later this week. Nvidia fell nearly 1%, while Qualcomm dropped almost 4% and Broadcom lost 2%.
Investor attention centred on sharp moves in bond markets, with the 30-year US Treasury yield briefly climbing above 5.19%, its highest level in nearly 19 years. The 10-year Treasury yield also rose to its highest level since January 2025.
Markets also monitored geopolitical developments after President Donald Trump cancelled planned military strikes on Iran following requests from Middle Eastern allies to delay further escalation.
Later in the session, reports emerged that the United States had seized an oil tanker linked to Iran in the Indian Ocean, adding another layer of uncertainty to the conflict.
Despite recent weakness, US equities remain near record highs following a strong rally driven by artificial intelligence optimism and robust corporate earnings.
Australian Market Outlook
Australian shares are expected to open lower following weakness on Wall Street and another sharp rise in global bond yields.
S&P/ASX 200 futures are down 39 points, or 0.5%, to 8,600.
Materials stocks may remain under pressure after weakness in global markets overnight, while technology shares are likely to stay in focus ahead of Nvidia’s quarterly earnings due Thursday AEST.
Investor attention will also turn to results from James Hardie, Argo Investments, Catapult Sports and Webjet. Annual meetings are scheduled for Resolute Mining, Sigma Healthcare and Stanmore Resources.
Offshore, markets will monitor April inflation data from the UK and Eurozone later in the day for further insight into global inflation trends and interest rate expectations.
