US stocks fell on Thursday as surging oil prices and climbing bond yields weighed on equities for a second straight day.

The Nasdaq composite dropped 1.25 per cent, leading indexes lower, while the S&P 500 slipped 0.5 per cent. The Dow Jones Industrial Average managed a 0.1 per cent gain. All three remain near record highs set on Tuesday.

Chip stocks were hit hardest. Nvidia, Broadcom, Intel and Micron fell 3 per cent or more after a Financial Times report raised questions about OpenAI’s revenue outlook. Benchmark Brent crude jumped 4.1 per cent to its highest close since September 28 on Middle East tensions.

Losses eased in the afternoon after President Trump posted that the US would not attack Iran before the midterm elections. The 10-year Treasury yield settled at 5.232 per cent.

‘Stocks can withstand higher yields, but the margin for error is narrowing,’ said eToro analyst Bret Kenwell, warning that elevated borrowing costs raise the bar for earnings growth.