Wall Street opened September lower, with the S&P 500 down 0.4%, the Dow off 164 points and the Nasdaq losing 0.7% by late morning Tuesday.
Brent crude rose 2% to $92.28 and the 10-year Treasury yield climbed to 4.77%, extending pressure from higher energy costs and a global bond sell-off.
Tech shares led the drag—Nvidia fell 1.2% and AMD dropped 2.9%—as investors worried stubborn inflation could keep borrowing costs elevated.
Rate expectations hardened after inflation stayed above 3%; traders now see a 66% chance the Fed raises rates at its September meeting.
The sell-off comes as U.S. debt has surpassed $40 trillion and the Strait of Hormuz disruption in the U.S.-Iran war keeps roughly 20% of global oil flows under strain.