Finance

The tech-heavy Nasdaq led the daily market decline, posting its worst session in nearly three months with a drop of 1.88%. Prominent chipmakers like Nvidia and Advanced Micro Devices fell over 3% and 5% respectively, as investors worried that rising borrowing costs could delay the ongoing enterprise artificial intelligence buildout.

Shares of Bank of America dropped approximately 6% following a disappointing quarterly financial report that came in below Wall Street expectations. Profitability was significantly hampered by a $1.2 billion regulatory fine imposed by the U.S. Treasury Department over anti-money laundering and sanctions compliance violations.

The unexpected acceleration in core inflation sent Treasury yields spiking initially as traders re-evaluated central bank policy. Concurrently, investor anxiety climbed as the Cboe Volatility Index advanced roughly 10% to close near 16.82.