Chip Stocks Decline Amid Rising Oil Prices and Elevated Treasury Yields
On Monday, chip stocks fell as oil prices surged ahead of a key Federal Reserve meeting. Crude oil (BZ=F) climbed to $109 per barrel, raising concerns about persistent inflation amid high diesel prices above an all-time high of $6 per gallon. At the same time, Treasury yields remained elevated with the 10-year yield (^TNX) near the 5% threshold and the 2-year yield at 4.64%, suggesting expectations for a rate hike by Fed policymakers this week. Tech stocks (XLK), led by NVIDIA (NVDA), declined more than 2%. This downturn followed warnings from AI leaders at Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT) about the risks of artificial intelligence development. Investors are betting on an 80% chance that the Fed will raise rates, according to Polymarket data.
Topics: fed_meeting_outlook oil_prices tech_stocks treasury_yields