Higher borrowing costs put pressure on technology stocks, with Nvidia shares down 2%. The rise in bond yields has increased concerns about valuations in the technology sector, where investors have been paying high prices for future growth.
Treasury yields continued to climb, with the 30-year yield reaching 5.32%, its highest level since 2007. The 10-year Treasury yield also moved higher to 4.73%.
Oil prices rise as Iran tensions escalate
Oil prices climbed to their highest level in more than two weeks as tensions around Iran and the Strait of Hormuz added to concerns over global energy supplies.
Brent crude futures, the international benchmark, touched $91 a barrel, while US West Texas Intermediate crude futures rose to $84 a barrel.
The move came after President Donald Trump said he plans to increase economic pressure on Iran and threatened to “bomb” Oman if it interferes with US plans for the Strait of Hormuz.
Meanwhile, the US Strategic Petroleum Reserve has fallen to its lowest level since 1982, adding another layer of uncertainty for energy markets.
Klarna shares plunge 18%
Among individual stocks, Klarna shares dropped 18% after the Swedish buy now, pay later company lowered its guidance for a sales-related measure.
The weaker outlook overshadowed a surprise profit reported by the company in its latest quarter, with investors focusing instead on the reduced guidance.
Nasdaq moves closer to round-the-clock trading
Nasdaq plans to introduce an overnight trading session that would allow investors to trade US stocks for almost 23 hours a day, subject to approval from the US Securities and Exchange Commission.
The exchange said it plans to launch the new session on Sunday, December 6, running from 9 pm to 4 am Eastern Time. The overnight window would complement Nasdaq’s existing premarket session from 4 am to 9:30 am and after-hours trading from 4 pm to 8 pm.
The proposed change would give investors in Asia and Europe greater access to US equities during their local trading hours and move Nasdaq closer to near-24-hour stock trading.
