US stocks finished lower on Tuesday, with the Nasdaq bearing the brunt of the selling as chip and technology shares pulled back sharply.

The Dow Jones Industrial Average fell 116 points, or 0.2%, to 53,343, while the S&P 500 dropped 0.7% to 7,692. The Nasdaq Composite slid 1.3% to 26,290.

Semiconductor and hardware stocks gave back some of their recent gains as investors grew more cautious about elevated global bond yields and whether the hefty spending on artificial intelligence will ultimately deliver the profits markets are expecting.

Bond markets remained a key focus, although the 30-year Treasury yield eased two basis points to 5.29%. Higher long-term yields have added pressure to equity valuations, particularly in growth-oriented technology stocks.

Meta was also in focus as a major trial got underway in California. A lawyer for the California attorney general's office told a federal jury that Meta had for years targeted children on Facebook and Instagram with technology designed to encourage compulsive use and boost advertising revenue. The 29 states involved in the lawsuit are seeking to hold Meta accountable over alleged misleading claims about safety and privacy risks. Meta has denied the allegations and argued that the states are seeking unreasonable design changes and an excessive payout.

Investors will turn to the retail sector tomorrow, with results due from TJX, Target, Lowe's and Estee Lauder.

Domestic Metals Corp (TSX-V:DMCU, OTCQB:DMCUF, FRA:03E0) is advancing the Smart Creek copper-gold-silver project in Montana under CEO Gordon Neal, whose previous successes include building multibillion-dollar valuations at MAG Silver and New Pacific Metals.

Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) has extended the known mineralized strike at its Potrero gold-silver property in Mexico to at least 70 metres through ongoing underground drilling at the historic Pinos Cuates mine.

TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said its management team continues to increase its personal holdings, with executive chairman Kirill Klip adding 4.2 million shares this year and strategic partner Altius Minerals also raising its stake.

Varon Corp (OTCID:OZSC) said its Ballislife Drink joint venture has secured a commitment to place Ballislife HYDRO Sports Drink in 125 convenience stores across the Dallas-Fort Worth area, marking its entry into Texas.

Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) reported continued exploration and production testing progress across Namibia, Gabon and Angola during the second quarter, including successful flows of hydrocarbons to surface from two zones at its KW1X well.

Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF, FRA:RLU) has outlined more than 350 metres of shallow zinc-silver-rich polymetallic mineralization at its Hanash North prospect in Saudi Arabia, with drilling returning mineralized widths of up to 20 metres.

374Water Inc (NASDAQ:SCWO, FRA:8LL) reported second-quarter revenue of $2.26 million, up about 280% year-over-year, as it advances the deployment of its supercritical water oxidation technology for destroying PFAS and other organic waste streams.

Custom Health Holdings Inc (TSX:CHLT) reported second-quarter revenue of US$7.4 million, up 70% year-over-year, with growth driven by its acquisition of InnovativeRx as it expands its medication management platform.

Klarna Group PLC (Unlisted (US):KLAR) shares dropped after its full-year guidance fell short of expectations despite the buy-now-pay-later company beating estimates in the second quarter with revenue up 27% year-over-year to $1.04 billion.

Baidu shares fell sharply after the Chinese technology company reported second-quarter revenue, earnings and net income below analyst expectations, with revenue declining 2% quarter-over-quarter.

Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) has extended the known mineralized strike at its Potrero gold-silver property in Mexico to at least 70 metres through ongoing underground drilling at the historic Pinos Cuates mine.

TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said its management team continues to increase its personal holdings, with executive chairman Kirill Klip adding 4.2 million shares this year and strategic partner Altius Minerals also raising its stake.

Varon Corp (OTCID:OZSC) said its Ballislife Drink joint venture has secured a commitment to place Ballislife HYDRO Sports Drink in 125 convenience stores across the Dallas-Fort Worth area, marking its entry into Texas.

Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) reported continued exploration and production testing progress across Namibia, Gabon and Angola during the second quarter, including successful flows of hydrocarbons to surface from two zones at its KW1X well

SpaceX Corp (NASDAQ:SPCX) shares are lower as about 319 million employee and early investor shares become eligible for sale on August 20 following the latest lock-up expiration.

Bond markets are facing a "perfect storm" as surging yields reflect rising concerns over inflation, oil prices, government borrowing and AI-related spending, says Axel Rudolph, chief technical analyst at IG.

The trend suggests the era of ultra-cheap debt is fading, creating a fresh headwind for economic growth and equities, says Rudolph.

"US Treasury yields climbed to their highest level in nearly two years as a surge in bond issuance, persistent inflation risks and concerns over widening fiscal deficits fuelled a sell-off in longer-dated debt. Expectations of heavy AI-related corporate borrowing are adding to supply pressures, while rising oil prices, amid continued tensions involving Iran, are reinforcing inflation concerns," the analyst commented. 

"The combination is pushing investors to demand higher returns for holding long-term bonds and raising questions over whether the Federal Reserve may need to keep monetary policy tighter for longer."

U.S. pending home sales fell 2.3% in July, missing expectations for no change and dropping to their weakest level since January. The pending home sales index declined to 71.2, matching its second-lowest reading since records began in 2001.

Housing data was mixed, with housing starts falling 12.4% to an annualized 1.239 million, below expectations for 1.350 million, while building permits rose to 1.443 million, topping estimates of 1.375 million.

Import prices fell 0.4% month over month, against expectations for a 0.1% increase, while export prices dropped 1.3%, compared with forecasts for a 0.2% rise.

Meanwhile, ADP said private employers added an average of 9,500 jobs per week in the four weeks through August 1, marking the first increase after seven consecutive weeks of declines.

Wall Street opened lower on Tuesday, with the Nasdaq leading the decline as rising Treasury yields continued to pressure technology stocks.

The Nasdaq Composite fell 1.3% to 26,291, while the S&P 500 slipped 0.6% to 7,702. The Dow Jones Industrial Average was down 38 points, or 0.1%, at 53,422.

Oil prices added to the cautious mood, with Brent crude climbing to $91 a barrel and West Texas Intermediate reaching $84 after President Trump threatened further economic pressure on Iran and tensions surrounding the Strait of Hormuz intensified. US crude prices were also supported by the Strategic Petroleum Reserve falling to its lowest level since 1982.

Higher borrowing costs remained a major headwind for equities. The 30-year Treasury yield climbed to 5.32%, its highest level since 2007, while the 10-year yield rose to 4.73%. Nvidia shares fell around 2% as investors continued to reassess richly valued technology stocks in the higher-rate environment.

Among individual stocks, Klarna plunged 18% after the buy now, pay later company trimmed its outlook for a key sales measure, overshadowing a surprise quarterly profit. Home Depot also dipped despite reporting improved second-quarter sales, as customers continued to favour smaller home-improvement projects.

Meta shares were lower ahead of the start of a social media addiction trial on Tuesday, adding another layer of pressure to the technology sector.

With yields pushing higher and oil adding to inflation concerns, investors are facing a more cautious start to the session as Wall Street weighs the impact of higher rates and renewed geopolitical tensions.

Good morning. If you were hoping for a quiet Tuesday, the futures screen has other ideas.

US stock futures are pointing lower, with the Nasdaq-100 leading the retreat, down 1% ahead of the bell. The S&P 500 is off 0.4%, while the Dow is clinging to the flatline like a commuter who missed the last carriage.

The culprit, once again, is the Middle East. President Trump has vowed fresh economic pain for Iran and, in a line you don't see on many trading desks, threatened to "bomb" Oman if it gets in the way of America's plans for the Strait of Hormuz.

Oil took the hint. Brent has climbed to $91 a barrel and West Texas Intermediate to $84, their highest in a fortnight, just as the US Strategic Petroleum Reserve drains to a level last seen when Reagan was in the White House.

Pricier crude means the inflation ghost is back, and bonds are rattled. The 10-year Treasury yield has pushed up to 4.72%, while the 30-year sits at 5.31%, a 19-year high, egged on by heavy government borrowing and Silicon Valley's insatiable appetite for AI funding.

There is a sliver of cheer. Home Depot rose 1% pre-market after shoppers plumped for smaller summer projects, and Toll Brothers and Klarna are still to report.