Tech Stocks Slide as Treasury Yields Climb, Inflation Fears Loom
U.S. equities retreated sharply on Tuesday, with the Nasdaq Composite dropping 1.2% and the S&P 500 falling 0.8% as Treasury yields surged. The 10-year yield breached 4.6%, while the 30-year benchmark briefly touched 5.2%—a move that typically pressures growth stocks and AI-related equities.
Market sentiment soured despite geopolitical de-escalation signals, as the breakdown of the traditional stock-bond correlation unnerved investors. Inflation concerns dominated trading floors, with crude oil's relentless rally fueling debate about potential Fed rate hikes. All eyes now turn to Nvidia's impending earnings report—a bellwether for AI sector sentiment.
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