FX.co ★ US Stocks Pull Back for 2nd Session

US equities declined for a second consecutive session on Thursday as Treasury yields rebounded to multi-decade highs, tightening credit conditions for the corporate sector. The S&P 500 slipped 0.3%, while the Nasdaq 100 and Dow each lost 0.5%.

Oil and fuel prices surged on reports that the US is planning additional strikes against Iran, threatening the recent recovery in seaborne oil exports from the Middle East and worsening the inflation outlook. Minutes from the latest FOMC meeting indicated that most policymakers expect further rate hikes will be needed to contain inflation. Combined with expanding budget deficits, this has pushed Treasury yields higher.

AI infrastructure stocks led declines for a second straight session, reflecting the sector’s sensitivity to overall risk sentiment and to higher borrowing costs, which weigh on AI-related capital expenditures. Intel, Lam Research, Marvell, and Micron each fell about 2%. Broadcom dropped 1% after issuing $60 billion in debt to help finance Anthropic’s expansion.