Global stock index drops, oil eases

MSCI’s gauge of stocks across the globe declined 6.44 points, or 0.59%, to 1,091.79

A global stock index dropped and oil prices eased ​as investors digested the latest headlines on Iran-U.S. talks to end the war.

MSCI’s gauge of stocks across the globe declined 6.44 points, or 0.59%, to 1,091.79.

European stocks were higher, however, further recovering ground lost on ‌Friday when ⁠they declined 1.5% as bond market jitters spread to equities.

The Dow Jones Industrial Average shed 322.24 points, or 0.65%, to 49,363.88, the S&P 500 dipped 49.44 points, or 0.67%, to 7,353.61 and the ​Nasdaq Composite dived 220.02 points, or 0.84%, to 25,870.71.

U.S. President Donald Trump said on Tuesday that the U.S. may strike Iran again and that he had been an hour away from ordering an attack before postponing it. He on Monday said he had paused a planned resumption of hostilities following a new proposal by Tehran to end the U.S.-Israeli war.

Oil prices settled lower on the day, with Brent futures down 82 cents at $111.28 a barrel.

Mounting inflation fears continued ⁠to drive up U.S. Treasury yields. The 30-year Treasury bond’s yield hit its highest in 19 years. It was last at nearly 5.18%. U.S. 10-year yields advanced to their ​highest levels in more than a year.

Investors are closely watching rising yields, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

We’re seeing the long ​end of the market continues to rise, he said. That is the reason why we’re seeing stocks on the defensive.

Rising yields push up borrowing costs and mean a higher discount for future company earnings, challenging stock valuations.

The AI trade will be tested by earnings from chipmaker Nvidia due on Wednesday, with expectations sky-high for the world’s most valuable company.