Nasdaq Tumbles Over 1.3% As Tech Shares Retreat Ahead Of Trump-Xi Talks

The Nasdaq Composite fell more than 1% on Wednesday, as rising Treasury yields and growing e&zwnj;xpectations of further Federal Reserve rate hikes pres&zwnj;sured technology and growth s&zwj;tocks.Investors were also tracking developments around the US-Iran conflict and awaiting President Donald Trump&#039;s meeting with Chinese President Xi Jinping.The tech-heavy index was down 1.32% at 26,885 at 01:14 p&zwj;.m GMT, after opening at 27,213.52. It traded as high as 27,217.33 and slipped to an intr&zwj;aday low of 26,885.The sell-&zwj;off came as markets reassessed the outlook for&zwj; US monetary policy. Federal Reserve Governor Michael Barr said the central bank may need further rat&zwnj;e increases, arguing that inflation risks have &zwj;risen while labour-market risks have eased, as per economic times report. His comments reinforced expecta&zwj;tions that borrowing costs could remain elevated for longer.Traders were already assigning a 50% probability of at least a 25-basis-point rate hik&zwj;e next month, according to the CME FedWatch Tool. The prospect of higher rates has wei&zwnj;ghed particularly heavily on growth-oriented technology stocks, whose valuations are more sensitive to changes in f&zwj;inancing costs.Bond markets added to the pressure. The yield on the 10-year US Treasury note climbed to 5.0458%, its h&zwj;ighest level since 2007, before easing slightly. Rising yields can reduce the relative appeal of equities and increase the cost of capital for companies.The dollar also strengthened, with the dollar index rising 0.54% to 101.09, reaching its highest level since July 29. Oil prices were another focus aft&zwnj;er crude resumed its rise, while markets assessed whether geopolitical tensions could disrupt energy supplies.Investor attent&zwnj;ion also re&zwj;mained on the Trump-Xi meeting, with discussions expected to cover trade, AI regulation and US arms sales to Taiwan.ALSO READ:&amp;nbsp;AI Guardrails, Tariffs And Trade: What&#039;s Likely At Stake In Trump-Xi Summit This WeekAt the same time, Iran&#039;s President Masoud Pezeshkian said Tehran would not surrender in its war with the United States but remained committed to diplomacy, adding to uncertainty arou&zwj;nd the geopolitical backdrop.The broader Wall Street session reflected the pressure. The Dow Jones Industrial Average w&zwnj;as down more than 250 points, while the S&amp;amp;P 500 also moved lower.The Nasdaq&#039;s decline follows its recent record-setting run, with the index having reached an intraday record high earlier in the week as artificial intelligence continued to support technology shares.

Nasdaq Tumbles Over 1.3% As Tech Shares Retreat Ahead Of Trump-Xi Talks

The Nasdaq Composite fell 1.32% as investors reacted to rising US Treasury yields and growing expectations of another Federal Reserve rate hike.

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