Global bond sell-off hits tech stocks as oil tops $90
US equities opened lower on 18 August as rising Treasury yields and oil prices reversed recent optimism, with the Nasdaq Composite leading the decline.
Global equity markets opened lower on 18 August as a sell-off in bonds pushed US Treasury yields and oil prices higher. The move marked a sharp reversal from the previous week, when soft inflation data had eased concerns about a September interest rate hike.
The technology-heavy Nasdaq Composite experienced the steepest decline, dropping 1 per cent in the first few minutes of trading. The S&P 500 fell 0.5 per cent, while the Dow Jones Industrial Average dipped 0.2 per cent.
Concerns over rising borrowing costs and renewed inflation pressures weighed heavily on the tech sector. Chip stocks led the losses, with Nvidia shares falling 2 per cent and Intel dropping 5 per cent.
In contrast, the energy sector posted gains as global oil prices climbed above $90. The divergence highlighted the mixed impact of higher yields and commodity prices on different market segments.
According to Yahoo Finance data, readers were notably viewing several semiconductor and storage firms during the session, including Micron, Sandisk, SK Hynix, Applied Materials, Seagate Technology, and Lam Research.
The data reflects the early trading session, meaning final closing figures may differ. The shift in sentiment underscores the sensitivity of growth stocks to changes in the cost of capital.
