Stock market today: Dow, S&P 500, Nasdaq futures slide as rising yields keep up pressure
Tech stocks led US markets lower before the bell on Tuesday, resuming a pullback as investors weighed apparent signs of progress toward an end to the US-Iran war.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank roughly 0.8%, while those on the S&P 500 (ES=F) dropped 0.4% on the heels of back-to-back losses. Dow Jones Industrial Average futures (YM=F) fell 0.2%.
Rising Treasury yields continued to put pressure on stocks, as the benchmark 10-year rate (^TNX) climbed above 4.6% again early Tuesday. Worries about higher inflation have lifted bond yields, as blockades in the Strait of Hormuz spurred a rally in oil prices.
Wall Street is debating whether the Federal Reserve will hike interest rates to get inflation under control. That’s seen as putting the appetite for growth stocks at risk, with high-flying AI stock valuations particularly in focus.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Optimism about a resolution crept into markets after President Trump said on Monday that “serious negotiations” are taking place, and there is a “very good chance” of a deal on Iran’s nuclear program. He said that at the request of Gulf allies, he had halted military action against Iran that was scheduled to take place on Tuesday.
The release of Nvidia (NVDA) earnings on Wednesday is the focal point of the week. Investors’ expectations for the world’s most valuable company are sky high. Moreover, Nvidia is a bellwether for the AI trade, which has become increasingly important in propping up markets amid inflation and geopolitical uncertainty.
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SpaceX IPO adds second Musk stock. It’s a problem for Tesla.
From Bloomberg:
For years, there was only one way for mom-and-pop investors to buy into Elon Musk’s vision: shares of Tesla (TSLA) Inc. That’s about to change — and it’s a serious risk for Tesla investors.
With the imminent initial public offering of Space Exploration Technologies Corp., better known as SpaceX (SPAX.PVT), the market will have an additional entry point for the “Muskonomy.”
Wall Street pros see investors’ attention and capital inevitably being siphoned away from Musk’s electric-vehicle maker and to his shiny new toy.
People gather on South Padre Island to watch SpaceX Starship Rocket on August 26, 2025. · RONALDO SCHEMIDT via Getty Images “This cannot be a positive for Tesla,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “We believe that Musk’s focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”
Indeed, the seemingly inherent competition between Tesla and SpaceX is a key reason why Musk is reportedly considering merging the two companies.
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