US Stocks Drop as Yields Extend Surge
US stock indices closed lower on Tuesday under continued pressure from higher bond yields. The S&P 500 fell 0.4%, the Dow shed 328 points and the Nasdaq lost 0.6%. The benchmark 10-year Treasury yield hit its highest level in nearly two decades. Escalating Middle East strikes worsened the outlook for regional energy supplies, increasing inflation risks and the prospect of a hawkish Federal Reserve response. Markets expect the Fed to hike rates by 25 bps tomorrow as higher fuel prices have driven inflationary pressures this year. Losses were broad-based, with credit-sensitive AI hyperscalers hit by rising borrowing costs. Alphabet shed 1.3%, Microsoft lost 1.6%, Oracle tumbled 3.1% and Amazon retreated 2%. Chipmakers were mostly higher following Monday’s selloff, when Anthropic CEO Dario Amodei called for slower AI development to mitigate risks from increasingly capable models. Nvidia added 0.6%, while AMD rose 2.2%.
US stock indices closed lower on Tuesday under continued pressure from higher bond yields. 6%. The benchmark 10-year Treasury yield hit its highest level in nearly two decades. Escalating Middle East strikes worsened the outlook for regional energy supplies, increasing inflation risks and the prospect of a hawkish Federal Reserve response.
Markets expect the Fed to hike rates by 25 bps tomorrow as higher fuel prices have driven inflationary pressures this year. Losses were broad-based, with credit-sensitive AI hyperscalers hit by rising borrowing costs. 1% and Amazon retreated 2%. Chipmakers were mostly higher following Monday’s selloff, when Anthropic CEO Dario Amodei called for slower AI development to mitigate risks from increasingly capable models.
2%.