S&P 500 falls, hurt by elevated global bond yields and oil prices

The S&P 500 fell on Tuesday, pressured by a run in sovereign bond yields to multidecade highs amid concerns of persistent inflation and elevated oil prices. A pullback in semiconductor stocks also weighed on the broader market.

The broad market index declined 0.5%, while the Nasdaq Composite was down 1.1%. Western Digital fell almost 7%, weighing on the Nasdaq. Sandisk dropped 8%. Marvell Technology and Seagate Technology were also both down by around 8%.

The Dow Jones Industrial Average shed 86 points, or 0.2%, with losses kept in check in part because of a roughly 1% advance in Home Depot shares after the home improvement giant posted a second-quarter earnings beat.

The U.S. 30-year Treasury bond yield was last trading at levels not seen in nearly two decades. The yield on Monday hit its highest level since June 2007.

Elsewhere, Japan's 10-year bond yield reached its highest level in three decades. Germany's 30-year bond yield hit its highest since 2011, and the French 30-year government bond yield reached its highest point since 2008.

"The market is overlooking the challenge on the bond yield side and preferring to focus on the solid earnings and the enhancements in artificial intelligence," said Bill Fitzpatrick, portfolio manager at Logan Capital Management. "At some point, we're probably going to be vulnerable to a bit of a sell-off."