US Stocks Pull Back for 2nd Session
US equities fell for a second session on Thursday as Treasury yields rebounded to multi-decade highs and pressured credit conditions for the corporate sector. The S&P 500 fell 0.3%, while the Nasdaq 100 and Dow dropped 0.5%. Oil and fuel prices surged amid reports that the US is planning new strikes against Iran, risking the recent rebound in seaborne oil exports from the Middle East and exacerbating the inflationary outlook for the economy. Minutes from the FOMC's last meeting showed that most members agreed more rate hikes will be necessary to tame inflation, which, combined with widening budget deficits, lifts Treasury yields. AI infrastructure stocks led the losses for a second session due to the sector's exposure to broad risk sentiment and the impact that borrowing costs have on AI capital expenditure. Intel, Lam Research, Marvell, and Micron lost around 2% each. Broadcom fell 1% after issuing $60 billion in debt to help fund Anthropic's buildout.
US equities fell for a second session on Thursday as Treasury yields rebounded to multi-decade highs and pressured credit conditions for the corporate sector. 5%. Oil and fuel prices surged amid reports that the US is planning new strikes against Iran, risking the recent rebound in seaborne oil exports from the Middle East and exacerbating the inflationary outlook for the economy. Minutes from the FOMC's last meeting showed that most members agreed more rate hikes will be necessary to tame inflation, which, combined with widening budget deficits, lifts Treasury yields.
AI infrastructure stocks led the losses for a second session due to the sector's exposure to broad risk sentiment and the impact that borrowing costs have on AI capital expenditure. Intel, Lam Research, Marvell, and Micron lost around 2% each. Broadcom fell 1% after issuing $60 billion in debt to help fund Anthropic's buildout.