The Wall Street was dragged down by declining tech stocks and chipmakers along with a rising treasury yield, prompted by worries surrounding elevated inflation and high borrrowing costs in the United States.
S&P 500 opened 0.5% lower at 7,365.94, Dow Jones Industrial Average opened 0.61% lower at 49,381.52, and the tech-heavy Nasdaq composite was down 0.57% to 25,942.48.
Major chip stocks such as Nvidia Corp., Micron Technology Inc., and Advanced Micro Devices Inc. traded lower shortly after the opening bell. Treasuries fell across the board, with the 10-year yield up seven basis points at 4.66%.
On Monday, the yield had risen to its highest level since February 2025.
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After the market opened all but two of the sectoral indices traded in the red. The decline was led by Materials sector, Consumer Discretionary sector, Communication Services sector, and Industrial sectors.
The AI induced tech rally, which sent chipmakers like Micron Technology to historic highs, seems to dying down while giving room for other sectors such as Healthcare to rise up.
As of 10 a.m. EST, AMD trailed nearly 4% to $405.06, Intel Corp. declined over 1% to $107.08, Microchip Technology slipped 2.11% to $90.84, Micron Technology traded 1.08% lower at $674.17, and bellwether Nvidia Corp was down 1.07% to $219.84.
Nasdaq 100 bore the brunt of the chip rout and shed nearly 338 points to trade 1.3% lower at 25,737.91.
Global benchmark brent crude traded 1.44% lower at $110.5 per barrel while the West Texas Intermediate eased by 1% to trade at $103.3 per barrel.
Dollar Spot Index rose 0.4% even as crude oil prices took a breather. The euro fell 0.5% to $1.1603, British pound fell 0.3% to $1.3389, and the Japanese yen fell 0.2% to 159.13 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 0.1% to $76,767.01
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