Finance

The Nasdaq and S&P 500 faced downward pressure as a significant rout in chipmaker stocks accelerated. Heavy losses from industry leaders like Intel, which fell nearly 10%, and AMD were driven by shifting sentiment regarding the long-term valuation of artificial intelligence growth.

U.S. government bond yields climbed significantly, with the 10-year Treasury note reaching 4.56% and the 30-year yield crossing the 5% threshold. This upward movement reflects growing investor concern that rising energy costs will fuel persistent inflation, potentially prompting a more hawkish stance from the Federal Reserve.

Following its high-profile inclusion in the Nasdaq 100 index, SpaceX shares dropped below their initial public offering price. While institutional coverage remains largely bullish, the stock's initial performance has been hampered by early investors offloading shares as funds tracking the index initiated their positions.