Semiconductor Stocks Slide as Treasury Yields Climb to 12-Month High
Chip stocks face renewed pressure as bond yields spike to 4.61% on the 10-year Treasury, their highest level in a year. Sandisk (SNDK) and Micron (MU) led declines, dropping 13% over five days despite strong earnings fueled by AI-driven memory demand.
The 30-year Treasury yield surpassed 5.18%, a 19-year peak, raising borrowing costs that may dampen consumer spending. This comes as oil price volatility and Middle East tensions add inflationary pressures—a headwind for tech valuations.
Semiconductors had briefly rallied last week before yields disrupted momentum. The sector remains caught between structural growth drivers (data centers, AI hardware) and macroeconomic crosscurrents.
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