US stocks: US market slips as rising Treasury yields offset AI-driven tech gains
US stock indices fell as increasing government bond yields weakened investor sentiment across the market. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all reported losses during the trading session. Chipmakers limited broader de...
By Reuters | Updated:
Reuters
US stocks traded lower on Tuesday as rising government bond yields weakened risk appetite and offset gains in AI-linked shares fuelled by optimism over Anthropic’s planned public offering, Reuters reported.
The benchmark 10-year Treasury yield climbed to 5.078%, near its highest level since 2007, reinforcing expectations that monetary policy will remain tighter.
Oil prices retreated, but concerns that energy-driven inflation could force central banks to keep interest rates elevated for longer continued to weigh on risk assets.
US President Donald Trump said earlier that he had offered Iran nothing to end the war, rejecting reports that he was prepared to provide some sanctions relief.
Meanwhile, The Dow Jones Industrial Average was down 322.03 points, or 0.63%, at 51,159.48. The S&P 500 slips 21.87 points, or 0.28%, to 7,661.82, while the Nasdaq Composite falls 30.71 points, or 0.11%, to 26,789.68.
Six of the S&P 500’s 11 sectors traded lower, with healthcare leading the declines with a 0.8% fall. Chipmakers helped limit broader losses as they recovered some ground following the previous session’s sharp selloff. The Philadelphia Semiconductor Index rose 2.1%.
Megacap and growth stocks were mixed. Meta Platforms and Nvidia advanced, while Microsoft and Apple each fell about 1%.
Technology stocks remained in focus after Anthropic’s IPO prospectus showed that the AI laboratory had grown rapidly over the past year while posting wider losses. The company is seeking a valuation of more than $2 trillion, potentially establishing a benchmark for how Wall Street values leading AI companies.
“The market is in somewhat of a show-me phase,” Newton Jones of Zizmer-Jones Private Wealth Management Group at Steward Partners told Reuters. “Earnings growth has been phenomenal, but expectations are extremely high and a lot of the good news is already priced in.”
The AI theme, which has driven much of the bull market since October 2022, remains critical. Investors will monitor remarks from OpenAI CEO Sam Altman at the company’s DevDay event later on Tuesday.
On the economic front, US job openings declined to 7.079 million in August, Labor Department data showed. The September Consumer Confidence Index came in at 81.9, below analysts’ estimate of 89.2.
Economic releases have attracted greater scrutiny as the Federal Reserve has scaled back its guidance on the policy outlook under Chair Kevin Warsh. Traders see a 70% chance of another interest-rate increase in October, according to CME Group’s FedWatch Tool.
At least six Fed officials, including New York Fed President John Williams, are scheduled to speak on Tuesday.
Among individual stocks, used-car retailer CarMax jumped 7.8% after reporting higher second-quarter profit and revenue.
Credit-scoring company Fair Isaac Corp. plunged 23.1% after Federal Housing Finance Agency Director Bill Pulte said Fannie Mae and Freddie Mac would move to a single pricing grid.
Declining stocks outnumbered advancers by 1.08 to 1 on the NYSE and by 1.09 to 1 on the Nasdaq.
The S&P 500 recorded six new 52-week highs and 23 new lows, while the Nasdaq Composite posted 24 new highs and 128 new lows.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
The benchmark 10-year Treasury yield climbed to 5.078%, near its highest level since 2007, reinforcing expectations that monetary policy will remain tighter.
Oil prices retreated, but concerns that energy-driven inflation could force central banks to keep interest rates elevated for longer continued to weigh on risk assets.
US President Donald Trump said earlier that he had offered Iran nothing to end the war, rejecting reports that he was prepared to provide some sanctions relief.
Meanwhile, The Dow Jones Industrial Average was down 322.03 points, or 0.63%, at 51,159.48. The S&P 500 slips 21.87 points, or 0.28%, to 7,661.82, while the Nasdaq Composite falls 30.71 points, or 0.11%, to 26,789.68.
Six of the S&P 500’s 11 sectors traded lower, with healthcare leading the declines with a 0.8% fall. Chipmakers helped limit broader losses as they recovered some ground following the previous session’s sharp selloff. The Philadelphia Semiconductor Index rose 2.1%.
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Megacap and growth stocks were mixed. Meta Platforms and Nvidia advanced, while Microsoft and Apple each fell about 1%.
Technology stocks remained in focus after Anthropic’s IPO prospectus showed that the AI laboratory had grown rapidly over the past year while posting wider losses. The company is seeking a valuation of more than $2 trillion, potentially establishing a benchmark for how Wall Street values leading AI companies.
“The market is in somewhat of a show-me phase,” Newton Jones of Zizmer-Jones Private Wealth Management Group at Steward Partners told Reuters. “Earnings growth has been phenomenal, but expectations are extremely high and a lot of the good news is already priced in.”
The AI theme, which has driven much of the bull market since October 2022, remains critical. Investors will monitor remarks from OpenAI CEO Sam Altman at the company’s DevDay event later on Tuesday.
ADVERTISEMENT
On the economic front, US job openings declined to 7.079 million in August, Labor Department data showed. The September Consumer Confidence Index came in at 81.9, below analysts’ estimate of 89.2.
Economic releases have attracted greater scrutiny as the Federal Reserve has scaled back its guidance on the policy outlook under Chair Kevin Warsh. Traders see a 70% chance of another interest-rate increase in October, according to CME Group’s FedWatch Tool.
ADVERTISEMENT
At least six Fed officials, including New York Fed President John Williams, are scheduled to speak on Tuesday.
Among individual stocks, used-car retailer CarMax jumped 7.8% after reporting higher second-quarter profit and revenue.
Credit-scoring company Fair Isaac Corp. plunged 23.1% after Federal Housing Finance Agency Director Bill Pulte said Fannie Mae and Freddie Mac would move to a single pricing grid.
Declining stocks outnumbered advancers by 1.08 to 1 on the NYSE and by 1.09 to 1 on the Nasdaq.
The S&P 500 recorded six new 52-week highs and 23 new lows, while the Nasdaq Composite posted 24 new highs and 128 new lows.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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