Finance

High-profile artificial intelligence and semiconductor firms faced heavy losses during the broader market plunge. Investors expressed growing concern that elevated borrowing costs could stall massive capital investments into data center expansions and chip acquisitions.

Bond yields jumped rapidly across the curve, with the 10-year U.S. Treasury yield pushing past 5.2%. The robust inflation prints fueled market expectations of aggressive central bank policy, lifting the U.S. dollar index to an 18-month peak.

Financial stocks contributed to the market decline as major companies posted disappointing results. Bank of America slid following a weaker-than-expected profit report alongside a multi-billion dollar penalty announced by the U.S. Treasury Department for sanctions and anti-money laundering violations.