Global stocks came under pressure Tuesday as a 60-day ceasefire between the U.S. and Iran expired without a permanent agreement, pushing oil prices higher and deepening a worldwide bond selloff. S&P 500 futures slid 0.5%, with Nasdaq-100 futures losing 1.2%. Dow Jones Industrial Average futures were little changed, up a scant 7 points.
Treasury yield climbed to 5.333%, on pace for its highest close since June 2007. Monday's deadline passed without any meaningful movement toward a durable resolution. President Donald Trump ruled out extending the truce and warned that Oman — the go-between linking Washington and Tehran — could face military strikes.
Overnight, a cargo vessel in the Strait of Hormuz was struck by an unidentified projectile, The Wall Street Journal reported, citing the British navy's marine-traffic monitoring agency. U.S. crude rose 0.5% on Tuesday to $84.88 a barrel. Brent crude hovered around $91 a barrel.
The bond selloff extended beyond the U.S. French and German long-dated yields reached their highest levels in more than 15 years, while Japan's 30-year yield neared an all-time high, according to The Wall Street Journal. Growing fiscal deficits, inflation concerns, and heavy borrowing by AI companies are all contributing to rising global financing costs, the outlet noted.
Semiconductor stocks led the Nasdaq lower. Western Digital and Sandisk each shed over 6%, and Marvell along with Seagate gave up more than 5%. Home Depot shares advanced 1% on the back of a stronger-than-expected second-quarter report, providing some cushion to an otherwise negative session for Dow futures.
European and Asian markets also retreated. Europe's broad Stoxx 600 index declined 0.51%, while the French CAC 40 retreated 0.55% and Italy's FTSE MIB dropped 0.59%. Japan's Nikkei 225 dropped 2.54% and South Korea's Kospi fell 1.55%.
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