US stocks fall as yields surge and AI shares weaken
US stocks extend losses on Tuesday, with the S&P 500 down 0.5%, the Nasdaq off 1.6% and the Dow down 150 points as long-term Treasury yields hit multi-year highs.
US stocks were mostly lower on Tuesday, extending losses from the previous session as higher borrowing costs offset recent support from AI infrastructure companies.
The S&P 500 fell 0.5%, the Nasdaq lost 1.6%, and the Dow eased 150 points.
Long-term Treasury yields extended their surge to multi-year highs as inflation risks and surging bond issuance from AI companies raised different estimates on term premia.
Inflationary concerns were magnified by more increases in energy prices as the US signaled a prolonged blockade on Iran tanker exports.
AI companies were mostly lower, with Nvidia, Meta, Tesla, and Oracle dropping up to 3%.
Credit-sensitive financial companies were also under pressure with Goldman Sachs and JPMorgan trading in the red.
Meanwhile, Home Depot gained around 1% after beating earnings estimates despite high