Stocks Decline as Chipmakers and AI Stocks Drop
On Tuesday, major U.S. stock indices closed lower amid a decline in chipmaker and artificial intelligence infrastructure stocks. The S&P 500 fell by -0.69%, the Dow Jones Industrial Average dropped -0.22%, while the Nasdaq 100 plunged -1.68%. These declines brought all three indexes to multi-week lows, with the Nasdaq hitting its lowest point in over a week and a half. The market downturn was driven by concerns around rising crude oil prices due to ongoing tensions in the Middle East, which fueled inflation worries and pushed bond yields higher globally. However, stocks managed some recovery later as bond yields retreated from their peaks. The 10-year U.S. Treasury note yield fell slightly after reaching a high of 4.75%. Economic data on Tuesday was mixed: housing starts declined sharply while building permits rose to a five-month high. Import prices and manufacturing production also showed strength, but pending home sales disappointed investors.
Topics: AI stocks bond yields Dow Jones Nasdaq Composite S&P 500