US Stocks Hold Decline
US stocks were lower on Tuesday, holding the pullback from the previous session on further pressure from higher bond yields. The S&P 500, Dow, and Nasdaq 100 fell up to 0.5% each. Long-maturity yields rose further as the escalation to strikes in the Middle East worsened the outlook on energy supply from the region, magnifying inflation risks and a hawkish response from the Federal Reserve. Markets expect the Fed to hike rates by 25bps tomorrow as fuel prices drove underlying inflation to gain traction this year. Most sectors of stock exchanges were lower, with credit sensitive AI hyperscalers leading the losses as their increasing debt positions clash against higher borrowing costs. Alphabet, Microsoft, and Meta fell 1%. Meanwhile, chip producers rebounded from yesterday's slump as markets assessed how risks to AI safety could slow infrastructure spending, with Nvidia, Lam Research, and Intel gaining 1%.
US stocks were lower on Tuesday, holding the pullback from the previous session on further pressure from higher bond yields. 5% each. Long-maturity yields rose further as the escalation to strikes in the Middle East worsened the outlook on energy supply from the region, magnifying inflation risks and a hawkish response from the Federal Reserve. Markets expect the Fed to hike rates by 25bps tomorrow as fuel prices drove underlying inflation to gain traction this year.
Most sectors of stock exchanges were lower, with credit sensitive AI hyperscalers leading the losses as their increasing debt positions clash against higher borrowing costs. Alphabet, Microsoft, and Meta fell 1%. Meanwhile, chip producers rebounded from yesterday's slump as markets assessed how risks to AI safety could slow infrastructure spending, with Nvidia, Lam Research, and Intel gaining 1%.