Oil is back above $92 and inflation fears are sending U.S. bond yields to their highest since January 2025

Rising oil prices are raising inflation fears and pushing bond yields higher, weighing down stocks on Wall Street.

The S&P 500 fell 0.7% Tuesday.

The Dow Jones Industrial Average fell 299 points, or 0.6%, as of 9:33 a.m.

Eastern time.

The Nasdaq composite fell 1.4%.

Much of the pressure being felt by Wall Street is coming from a sell-off in U.S government bonds.

The yield on the 10-year Treasury rose.

Oil prices continued climbing, putting more pressure on inflation.

Markets in Europe were mostly lower and markets in Asia were mixed.

THIS IS A BREAKING NEWS UPDATE.

AP’s earlier story follows below.

A heavy sell-off in U.S. government bonds is gaining momentum with anxiety about persistent inflation driving prices lower.

The yield on the two-year Treasury, which closely tracks expectations about Fed moves, rose to 4.35%, on Tuesday.

That’s up significantly from about 3.50% at the beginning of 2026.