Stocks fell Tuesday as a jump in bond yields threatened the bull market by weighing on the U.S. consumer and undermining the growth of technology stocks.
Traders also kept an eye on the oil market following President Donald Trump’s cancellation of planned attacks on Iran, as well as recent stress on chip stocks.
“The bond vigilantes are at play right now,” said Will McGough, Chief Investment Officer at Prime Capital Financial. “Everybody’s on to energy prices staying higher, which could lead into inflation that’s behind the curve a little bit.”
Bond vigilantes are institutional investors who sell off government bonds to signal their disapproval of inflationary U.S. monetary policies.
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