FX.co ★ US Stocks Pull Back Further

US stocks mostly declined on Tuesday, extending the previous session’s selloff as the drag from higher borrowing costs outweighed recent support from AI infrastructure names. The S&P 500 slipped 0.5%, the Nasdaq fell 1.6%, and the Dow lost about 150 points. Long-term Treasury yields climbed to new multi-year highs, driven by persistent inflation worries and a surge in bond issuance from AI-related companies, which fed into varying estimates of term premia. Inflation concerns were further aggravated by another jump in energy prices after the US signaled it would maintain a prolonged blockade on Iranian tanker exports.

AI-linked stocks traded mostly lower, with Nvidia, Meta, Tesla, and Oracle each declining as much as 3%. Credit-sensitive financials also came under pressure, with Goldman Sachs and JPMorgan both in negative territory. In contrast, Home Depot rose roughly 1% after reporting earnings that beat expectations despite a challenging, high-rate environment.