US stocks resume their slide after higher oil prices crank up the bond market's pressure

U.S. stock markets slipped Thursday as rising oil prices intensified bond market pressure, reversing recent gains. The S&P 500 fell 0.4% and the Dow Jones Industrial Average dropped 253 points (0.5%), while the Nasdaq composite declined 0.4%. The market’s momentum stalled despite Nvidia reporting a blowout quarterly profit, with revenue exceeding expectations and CEO Jensen Huang calling AI infrastructure expansion ‘the largest in human history.’ Nvidia’s stock fluctuated before closing up 1.1%, but analysts noted investors may be locking in profits after its 70% year-to-date surge. Oil prices climbed 3.4% to $108.54 per barrel, driven by uncertainty over Iran’s war-related blockage of the Strait of Hormuz, which restricts Persian Gulf oil exports. Higher oil costs fueled inflation concerns, pushing 10-year Treasury yields up to 4.61% from 4.57%, increasing borrowing costs for companies and mortgages. The bond market’s rise slowed stocks globally, with European indexes dipping after Asian gains. Walmart’s stock plunged 5.9% after its earnings report, despite strong revenue, due to weaker-than-expected profit forecasts amid consumer caution over inflation. Meanwhile, South Korea’s Kospi surged 8.4% on tech strength, with Samsung Electronics up 8.5% after averting a strike and SK Hynix rising 11.2%. Japan’s Nikkei 225 climbed 3.1% on stronger export data, though Hong Kong and Shanghai indexes fell. The U.S. job market showed resilience, with unemployment claims unexpectedly declining last week, signaling fewer layoffs. However, rising yields and oil prices threaten economic growth, particularly for AI data center construction. Investors appear less reliant on Nvidia’s moves alone to drive market trends, as broader concerns over valuation and circular AI industry investments grow.